SE Asian billet market edges up

Posted on 21 September 2020

The Southeast Asian billet import market continues to firm, Kallanish notes. Certain Southeast Asian mills acceded to paying higher prices to secure billet imports.

During the week, market participants heard a 20,000-tonne parcel of Indonesian blast furnace bar-quality billet booked at $450-452/tonne cfr Malaysia. The same mill is also selling billet to Jakarta at $452/t cfr, an Indonesian reroller reported.

High scrap costs are forcing the regional EAF mills including those in Malaysia to turn to billet imports instead of producing billet, a regional trader says. The mills’ production cost for billet is at a minimum of $450/t using domestic scrap tagged at an estimated $300/t. It would cost more if domestic scrap supply is limited and the mills need to buy higher-priced scrap imports. "These mills are facing a squeeze. But the (foreign) exchange rate has become more favourable for regional importers," he says.

In Manila, a 30,000t cargo of 130mm 5sp modified billet from Russia was ordered during the week at $455/t cfr Manila. The cargo is due for December shipment. EAF billet from South Korea is currently offered at $456/t cfr.  Vietnamese induction furnace billet is offered at $450/t cfr against a bid of $445/t cfr. Japanese EAF billet and Russian 100mm square billet were ordered during the 11 September week at $450/t cfr

On Friday, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $450-455/t cfr Manila, up $5 on-week.

Meanwhile, Iranian billets for October/November shipment were booked at $435-440/t cif Ko Sichang in the first half of September. Iranian billet is also heard ordered at $435/t cfr Indonesia during the first week of September.

Source : Kallanish