Induction Furnace Billet Is Becoming More Popular Among Filipino Re-rollers As A More Affordable Option Than Blast Furnace And EAF Billet

Vietnamese induction billet is rumored to have recently been sold by a Chinese dealer for $622–623 per ton cfr Manila. Traders claim to have seen a fast offer for Thai 130mm induction furnace billet for March shipment in the 3sp grade at $610/t cfr and the 5sp modified grade at $620/t cfr, both for 5,000t.

There are still a number of Chinese billet position goods available. On Friday, it was reported that a 10,000t cargo of Chinese Q275 150mm for an April shipment was scheduled at less than $625/t cfr Manila. Additionally, a trader was seen advertising 130mm/150mm Q235 billet for shipment in April from a number of different Chinese mills for $605/t cfr Manila. 5sp/ps or Q275 120/125/130mm square coin was valued at $625/t cfr Manila, an increase of $10 week over week.

During the week, bookings from Filipino customers were notably in the low $620s. The second-tier customers are accepting the induction furnace billet rates because of this, according to a trader in Manila. He’s heard that the EAF Middle Eastern ticket can cost as much as $655/t cfr Manila.

Buyers would be prepared to pay at least $5/t more for EAF/blast furnace billet than for induction furnace billet, according to another trader. Their willingness to pay would rely on the market trend, offers that were available, requirements, inventory levels, and other variables, according to him. There used to be very little price difference between 3sp and 5sp quality billet, the author observes.

Regional fresh-production blast furnace feedstock is now more expensive, cost-from-Manila $645-655/t. According to a local trader, an Indonesian blast furnace factory is currently offering 3sp billet for $620/t fob and 5sp billet for $630/t fob.

The market is probably going to keep climbing. Due to the rise in scrap, Vietnamese factories are also raising their billet offers. According to a trader in Hanoi on Friday, induction mills were willing to take a sales price of $595-600/t fob for end-April billet shipments, but they are now demanding $605/t fob. They will increase their bids for billet if scrap prices continue to rise, he continued.