Posted on 18 Jan 2021
The Southeast Asian billet market has softened after weeks of relentless price hikes, Kallanish notes. Certain suppliers started last week to lower offers, and buyers were taking a wait-and-see stance, particularly at the end of the week.
A leading re-roller is heard to have ordered 40,000 tonnes of Chinese 150mm Q275 billet (alloy square bar) at $590/tonne cfr Philippines, for March shipment. These Chinese offers are likely from short-selling traders, a Chinese trader says. Such offers, which did not specify the Chinese mill name, were available on 15 January. "Sometimes performance is a problem" for traders who pre-sell, a Chinese trader says. Chinese billet is prevailing at $590/t fob China.
The collapse in the Turkish scrap rally on 14 January has affected buying sentiment in the Philippines. "Some customers will not even consider a $595/t cfr bid for blast furnace billet," a Manila trader says.
During the week, blast furnace billet prices were noticeably falling, with a Malaysian mill offering material at $620/t cfr Manila, down from $630/t cfr earlier in the week. An Indonesian mill’s blast furnace billet is offered at $600/t cfr for 3sp and at $610/t cfr for 5sp. The market peaked when blast furnace billet from Vietnam was ordered at around $615/t cfr on 7 January.
Billet from a Russian mill was offered last Thursday at $615/t cfr Manila but bids are invited at $610/t cfr. Japanese EAF billet was also offered at $640/t cfr but this was negotiable, importing sources say. The billet market is slow, an importer says. “It’s quiet,” a trader says. Previously, Russian 0.7% Mn modified 5sp billet was ordered at $608/t cfr during the week ending 8 January.
On 15 January, Kallanish lowered its 5sp/ps or Q275 120/125/130mm square billet assessment to $590-605/t cfr Manila, down $12.5 week-on-week.
Meanwhile, some Chinese buyers are starting to inquire about importing billet, several regional traders say. However, Chinese trading sources say that this business is not workable because international prices are too high. Chinese buyers are aiming to pay below $550/t cfr, if the prevailing 2% import duty is not factored in. Domestic billet prices are prevailing at around RMB 3,800/t ($587/t).
Source:Kallanish
