Posted on 14 Dec 2020
Trades appear to have slowed down in the past week in the Southeast Asian billet import market, Kallanish notes. Suppliers have been hiking export prices relentlessly amid surging raw materials.
During the week, a 5,000-10,000-tonne cargo of Japanese EAF billet for February shipment was booked at $529/tonne cfr Manila. A trader says that he received an offer for Vietnamese induction furnace billet at $535/t cfr on Thursday . An importer says that Russian billet was being indicated at $540/t cfr but believes that firm offers would be higher. However, another buyer said that he received lower quotes at $525-530/t cfr for Vietnamese induction furnace billet.
"Next week [of 14 December] would be the last full working week," a Manila trader says on Friday. Although the market would be in near shutdown after that, buyers "will still be on the lookout for bargains if any." He described the price run-up as "crazy and irrational" with certain suppliers being opportunistic and others buying our of fear of prices rising even higher.
An Indonesian blast furnace mill was heard to have sold wire-rod grade billet at $522/t fob, also to Indonesia, on 8 December. The mill is offering its rebar-making billet domestically now at the equivalent of $528/t cfr Indonesia. "The local market is not ready to accept this price level," a Jakarta mill source says. Domestic prices of rebar are lagging behind at slightly higher than $560/t. The Indonesian mill sold 20,000t to a Jakarta re-roller at around $510/t cfr during 4 December week.
Vietnamese blast furnace billet is being offered "so high" at $540/t fob, a local trader says. A Russian mill is offering 150mm commercial-grade billet at $550-560/t cfr Taiwan on Friday (11 December) morning.
On 11 December, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $530-535/t cfr Manila, up $15/t on-week.
Meanwhile, some traders report a surge in Iranian billet prices. A Thai trader heard suppliers indicated offers at $520/t cif Thailand for January/February shipment. A regional trader heard offers earlier in the week at $515-520/t cfr Asia which later went silent. Offers for January/mid-February shipment had been heard at $495/t cif Thailand during the week of 4 December.
Source:Kallanish
