Posted on 16 Mar 2020
Billet importers in Southeast Asia are on the sidelines, Kallanish notes. The market environment has worsened after historic falls in stock markets during the week. Buyers are not in the buying mood as regional governments including the Philippines roll out more stringent measures to restrict movement and borders in a bid to stem the spread of the Covid-19 virus.
Offers for 3sp/5sp billet are prevailing at $410-415/tonne cfr Manila. Deals concluded at $415/t cfr for 150mm 5sp blast furnace billet from Vietnam a week ago. That Vietnamese mill is seeking to export at $400/t fob now. Since freight rates have come down, this is equivalent to offers at $410-415/t cfr Manila depending on grade, a Vietnamese trader says. Commercial 5sp billet would be priced at $410-413/t cfr, he estimates. An offer for Russian 125mm billet was lowered to $412/t cfr Manila on Thursday, from $420/t cfr, a Philippine trader says.
The mood has been severely dampened after Philippines' president Duterte announced Thursday a month-long lockdown of Manila to contain the virus spread, a trader says. A regional trader reports hearing South Korean billet booked at under $415/t cfr Manila during 6 March week. “These were all done last week before the pandemic panic of this week,” he said Friday. Another trader says that buyers are not willing to consider $415/t cfr now nor will they be interested to pay $410-415/t cfr now unless they need material.
On Friday, Kallanish lowered its 5sp/ps or Q275 120/125/130mm square billet assessment to $410-412/t cfr Manila, down $3 on week.
In Thailand, rebar prices have slumped to around THB 14,500/t ($453/t) ex-mill, Thai trading sources report. The rerollers would want to import billet at the equivalent of $395/t cfr maximum, well below current offers. The local billet price is prevailing at THB 12,400/t or the import parity of $380/t, Kallanish hears.
Source:Kallanish
