Posted on 16 Nov 2020
The Philippine billet import market was quiet during the week amid the sharp uptrend in the regional steel prices, Kallanish notes. There are few fresh offers in the Philippine market as buyers’ price idea is trailing behind hiked offers.
Russian-origin 100mm square billet was booked during the 13 November week at $460/tonne cfr Manila. Half of the same 20,000t cargo was previously ordered the week before at $455/t cfr. A Russian 125mm billet cargo was booked at $452/t cfr around 5/6 November. The booked Russian billet cargoes are for January shipments.
Market sources say that there are few fresh offers in the market during the week. Limited offers have moved up to $470/t cfr Manila levels. Offers for blast furnace billet from the region were at $475/t cfr Manila, an importer says. But he did not hear of bookings. "The buying level is probably at $460/t cfr Manila," he adds.
Some trading sources attributed the quiet market to a strong typhoon recently hitting the country's largest island of Luzon. But a Manila trader thinks that this is a 'minor factor.' "I think the weaker local demand coupled with skyrocketing prices are the main reasons," he says.
Chinese strong import buying has driven regional billet prices higher. After a Vietnamese mill sold blast furnace billet to China around 9 November at $465/t fob, its current offer price has been hiked to $480/t fob, Vietnamese trading sources say. An Indonesian steelmaker is now offering blast furnace billet at $480/t cfr China, up from its booking of $475/t cfr China around the same time as the Vietnamese billet purchase.
On Friday, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $460-465/t cfr Manila, up $9 on week.
Source:Kallanish
