Posted on 30 Sep 2020
The market for imported billet has softened this week in Southeast Asia, Kallanish notes. Trading sources say they are noting lower offer prices and demand from buyers has also weakened.
A Jakarta re-roller is heard to have booked 20,000 tonnes of mostly 1sp – wire rod making – grade billet from an Indonesian blast furnace mill at the equivalent of around $442-445/tonne cfr. Another Indonesian re-roller also booked some tonnage of the 1sp billet from the Indonesian mill at around $448/t cfr Surabaya last week.
In the Philippines, less than 10,000t of Vietnamese 130mm 5sp EAF billet was booked last week at $445/t cfr. Russian 125mm square billet for November shipment is now offered at $440/t cfr, down from $445/t cfr Manila on Friday.
Offer prices are dropping, a Manila trader says. Demand is really weak now and buying has stopped this week, he adds. A 16,000t position cargo for Indian blast furnace 125mm square 5sp billet for shipment by 15 November is now heard seeking a firm bid of $445/t cfr Manila. "Looks like the trader will lose money on this position," a regional trader says. He believes the cargo was secured with a bid at "…very close" to $430/t fob India. Freight could probably cost more than $25/t, he adds.
Another Manila trader notes the number of billet import offers remains about the same as usual or even less in the Manila market. "Sellers are being cautious about spooking the market even more," he says.
Source:Kallanish
