Posted on 23 Dec 2024
ASEAN buyers are trying to push down billet import prices in a softening market, Kallanish notes. The Philippines market is seeing competitively priced offers for Japanese EAF billet, in addition to the usual Chinese and ASEAN material.
Japanese-origin 5sp 130mm billet for February shipment is being offered at $462/tonne cfr Manila, a regional trader reports. A Manila trader reports hearing traders inviting bids at $460/t cfr against initial offers at $475/t cfr. There are multiple offers, of 6,000-tonne and 10,000t lots, Kallanish understands.
“There is a bit of a stalemate between billet buyers and sellers currently,” a Manila reroller says. He believes most Philippines buyers are holding out to book at below $460/t cfr.
Buying interest is thin and buyers are not enticed by lower prices because of the holiday mood, a Manila trader says.
For many companies, Friday was the last working day before the Christmas and New Year holidays.
“Business simply hasn’t improved, and the outlook isn’t rosy either,” the trader notes. “The latest uptick in China after the announcement of new stimulus measures has lost steam already. Southeast Asia is drowning in steelmaking capacities, both old and new.”
Chinese billet prices fell in tandem with the souring of Chinese steel futures and spot markets. Chinese 3sp 150mm billet was offered at $435-440/t fob compared to around $455/t fob on 13 December, Chinese trading sources say. Buying inquiries from Indonesia and Philippines were at around $450/t cfr for 3sp and $455/t cfr for 5sp grades, Chinese traders say.
Kallanish lowered its assessment of 5sp/ps or Q275 120/125/130mm square billet to $460/t cfr Manila, down $5/t on-week.
In Indonesia, offers for Japanese 5sp billet were at $475/t cfr last Wednesday. Chinese 3sp billet is prevailing at $465/t cfr Jakarta and 5sp billet at $470/t cfr.
A leading Indonesian mill lowered its 3sp 150mm billet to $440/t fob for February shipment, effective 20 December, down $5/t from the day before. Its slab export prices were similarly lowered by $5/t to $440/t fob.
Source:Kallanish
