Suppliers cut billet prices to SE Asia, new deal levels far below $700/mt CFR

Thursday, 24 June 2021 15:43:19 (GMT+3) |Istanbul

The trend in the Southeast Asianbilletmarket has reversed again as the overall weak demand without China and relatively high supply have put pressure on the market mood. Moreover, new deals have already been reported at lower levels from regional suppliers - far below $700/mt CFR, targeted by exporters a week ago.

A deal for 30,000 mt of ex-Vietnam 150 mm BFbilletwas done at $680/mt CFR yesterday to a major importer in the Philippines, SteelOrbis has learned. The price is $650/mt on FOB basis and the final CFR level depending on freight costs. And though this size is not very common in the Philippines, the contract reflects the weakening of bids in general.

Most offers for more commonbilletsized 120-130 mm in the Philippines have come down to $690/mt CFR, while suppliers were asking for $695-710/mt CFR last week. In particular, last week a small volume of ex-Indiabilletwas sold at $695-698/mt CFR Manila, but now the tradable level is hardly at even $690/mt CFR, local sources said. "There have been purchases of Vietnamese induction furnace billets at $675-680/mt CFR Manila," a local source said, but no new contracts for BF or EAFbillet(120-130 mm) have been heard so far.

An offer from Russia has been reported at $690/mt CFR for 130 mmbillet, according to traders, while no deal has been heard so far as buyers are aiming to get some additional discount.

A trader was offering a cargo of ex-Vietnam BFbilletat $700-705/mt CFR last week, but at the moment the negotiations have moved down to $690-692/mt CFR Manila.

Demand for importbilletin China has remained reduced this week and tradable prices have fallen further to $650-660/mt CFR maximum for 5SP, according to SteelOrbis, so many suppliers have had to redirect their attention toSoutheast Asia. One trading source mentioned that over the past few months allbilletfromSoutheast Asia(mainly from Vietnam, Indonesia and Malaysia) were selling to China, while now exporters from these countries have a lack of options. Indian suppliers have also been more flexible as they are trying to maintain stable export volumes and their focus onSoutheast Asia.

Nevertheless, there has been no big volume offered from Russia to Asia, as suppliers from the Black Sea region have been focusing on neighbouring markets, while one major producer from Russia’s Far East region has maintenance works.

Demand for importbilletin other Southeast Asian countries like Thailand and Indonesia has remained subdued. Only one deal for 20,000 mt of ex-India 200 mm bloom has been heard to Thailand at $685/mt CFR this week.

The new workable price level for ex-IranbillettoSoutheast Asiahas been reported at $650/mt CFR Thailand, local sources have said, claiming it is reasonable in the current conditions. No such offers have been provided so far.

该报道引用price for importbilletprice to the Philippines has come to $680-690/mt CFR, down by $10/mt from early this week and $15/mt from late last week.


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