Posted on 19 Oct 2020
The Southeast Asian billet market remains firm, Kallanish notes. A limited number of offers are heard in the market at similar or higher levels than last week.
A cargo of 5,000-6,000 tonnes of Japanese EAF 130mm square billet for December shipment was booked earlier in the week at $447/tonne cfr Manila. Its grade is equivalent to 3sp billet. Traders also report that Russian 125mm square billet for December shipment is still offered at $445/t cfr Manila.
As this is the same price concluded for a November-shipment cargo from the same mill around ten days ago, some sources wonder if the offer is real. "Not sure if this is a firm position or [the supplier is] inviting bids only," an importer says. "As far I know, there are no offers at below $450/t cfr now," a trader said on Friday. Vietnamese EAF billet is offered at $451/t cfr. Many buyers in the Philippines are already covered for early next year and are looking for January-shipment cargoes, he added.
On Friday, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $445-447/t cfr Manila, up by $3.5.
Meanwhile, the Chinese import market was quiet, regional and Chinese trading sources said on Friday. Vietnamese-origin 3sp blast furnace billet was last heard booked at $445/t cfr China on 9 October. There is no profit on an import price of $445/t, a Chinese trader says. Current domestic billet prices of CNY 3,390/t ($506/t) would translate to around $435/t, excluding 13% VAT and taking into account taxes of $10/t, he calculates.
Source:Kallanish
