Posted on 09 Sep 2024
The market tone in the ASEAN billet import market reversed and fell sharply last week, Kallanish notes. Buying has been muted in the region because of weak demand and fluctuating prices.
Billet offers in the Philippines market for mostly open-origin ASEAN and Chinese 3sp grade 150mm billet for November shipment plunged to as low as $445-458/t tonne cfr at the end of last week. Offers for 5sp grade are around $6/t more. Last week’s fall of at least $20/t week-on-week offsets an increase of $15/t in offers during the week through 23 August.
The $445/t cfr Manila was offered by short selling amid slumping steel futures, according to a Chinese trading source, showing very pessimistic market sentiment. Market activity has fallen as other traders hesitated to offer at such a low level.
One mill in Tangshan offered 3sp 130mm billet at $436/t fob Tianjin port last Friday. The freight from China to Manila was around $20/t. Mills in eastern China did not offer billet publicly.
“It is a crazy stupid market,” a Manila trader says on the price plunge. He has not heard of deals taking place. He does not blame local buyers for their reluctance to participate in the uncertain market environment.
Offers for 5sp 150mm billet from China are prevailing at $455-460/t cfr Indonesia. A trader says that buyers are bidding at $450/t cfr Indonesia. “The market seems to be still falling today,” a Jakarta buyer says Friday. He saw offers previously at $460/t cfr.
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $450-455/t cfr Manila, down $10 on-week.
Source:Kallanish
