Last Week, The Southeast Asian Billet Import Market Gained Traction

Due to weak regional demand, regional mills’ target offer prices continue to be out of reach for consumers.

On February 2, a 10,000-tonne cargo of 130mm 5sp blast furnace billet of ASEAN origins was allegedly booked at about $600/t cfr Manila. According to import sources, the customer reserved the cargo for stock replenishment. The consignment of billets is probably from Indonesia. The shipment is a trader’s position cargo because greater bids from the same Indonesian mill, at $620/t fob for 3sp billet and for April shipment, are now available. For 150mm 3sp billet, it is now accepting offers at $640/t cfr for shipment in April.

Another contract was placed on Wednesday for 20,000t of non-ASEAN 130mm 5sp billet for shipping in March at a cost of $600/t cfr Manila.

According to a trader in Manila, the market’s current practical price is $600/t cfr. A local trader reports that a customer said on Friday that he could purchase billets for up to $600/t cfr. At $600/t cfr Manila, 5sp/ps or Q275 120/125/130mm square billet, up $17.5 on-week.

Since Thursday, local dealers claim they have been receiving numerous offers of position cargoes. Because market sentiment has shifted more negatively over the last three days, more of these offers are anticipated to be made public, according to a buyer in Manila. The market, in his words, is “finicky.” The offers are generating a lowering of market sentiment. Another trader in Manila notes, “Some are forecasting that prices would go back to $550.”