The ASEAN Billet Industry Is Stagnant Due To Negativity

Since early last week, Chinese 3SP grade 150mm billet has been reported to be sold at $610/tonne cfr Manila. A trader in Manila claims that there are no buyers. Another person learned on Friday that Chinese 3SP 150mm billet was available for $605/t cfr. 5sp/ps or Q275 120/125/130mm square billet was evaluated at $610–615/t cfr Manila, down $10 on-week.

According to a trader in Manila, “there is a confidence deficit in the market,” which prevents steel prices and demand from rising significantly. According to him, recent financial problems in the USA and Europe were a major factor in this. But he also notes there are “hardly any” offers in the market. “I guess suppliers know it’s pointless to keep dropping offers,” he observes.

The last transactions made in the Philippines were for Chinese 5sp 150mm grade billet and Vietnamese 5sp 130mm grade billet for EAF and induction furnaces at $620/t and $630/t cfr, respectively, early in the 17 March week.

Regarding the local billet market, a trader declares, “Everything is super bearish.” He is aware of Iranian billets being sold for $600–605 per ton, cfr Indonesia. The price for Indonesian 3SP ingots is still $625/t cfr Indonesia, though. In Jakarta, a re-roller remarks, “It’s still high.” He does not believe that the Iranian billet would be well received by purchasers either. Prices are dropping, he continues.