Rising import activity for billets in China and, as a result, a reversal of the price trend has led to higher prices inSoutheast Asia, but most buyers have been cautious in purchases so far.
Following deals for IFbilletat $660-665/mt CFR Manila last week, at least one new booking also for IF was done at $650-655/mt CFR to the Philippines early this week. “Not much interest is for BFbillet, when the gap between BF and IF is approx. $30/mt,” an Asian source said.
By Thursday, July 8, suppliers have started to increase prices, seeing improved sentiment in China, and buyers inSoutheast Asiahave reported an increase of around $5/mt in prices.
结果,提供了对ex-ASEAN电弧炉billethave been heard at $675/mt CFR to the Philippines, while offers for BFbillethave started to come at $685/mt CFR. Sources said that these mills, who are not interested in purchases of IFbilletin the Philippines, may turn to EAF/BFbilletwith the tradable level assessed by market participants at $675-680/mt CFR, but suppliers expect that a higher price level could be achieved in the near future. “We are receiving higher offers and following the trend, although there is not much action now, I would say,” a trader from the Philippines said.
Demand in other Southeast Asian countries like Indonesia and Thailand has been even slacker with buyers not even releasing bids. “Indonesia is very silent due to high increasing Covid cases and lockdowns,” a major importer in the country said. Thai buyers have received offers for ex-Iranbilletat $670/mt CFR from traders, but “no buying interest,” a local source said.
The SteelOrbis reference price for importbillet(excluding IF) inSoutheast Asiahas been increased by $5/mt from last week to $675-680/mt CFR.
The optimism persisted in the Chinesebilletmarket on July 8. Steel mills in Tangshan have increased localbilletprices by another RMB 20/mt ($3/mt) today to RMB 5,020/mt ($776/mt) ex-works, which corresponds to $687/mt. As SteelOrbis reported yesterday, an ex-Vietnam 5spbilletwas sold to China at $685/mt CFR in the middle of this week and new negotiations are being held at $690-695/mt CFR.
$1 = RMB 6.4705