Posted on 28 Mar 2022
Rerollers in Southeast Asia are shying away from the billet import market, Kallanish notes. Regional rebar markets are not strong enough to support current import offer prices. The region is starting to see diverted prompt billet cargoes which were originally destined for China.
In Manila, 20,000t of Malaysian 120mm blast furnace May-shipment billet is offered from a trader at $840/t cfr on Friday. The trader is heard to have booked the parcel at $780-790/t fob.
Rerollers will find it difficult to pay the cfr price. “The price seems too high. Most billet buyers still have sufficient stocks,” a reroller says. But there could be a buyer who will pay a high price because he needs material urgently, he adds.
For 150mm blast furnace billet, Indonesian and Chinese material are offered at $830/t cfr. Thai induction furnace billet is currently offered at $785/t cfr Manila. Also, a position lot of 125mm Russian billet is offered by a Chinese trader at $790/t cfr Manila, compared to $820/t cfr during the 18 March week.
"I haven’t heard of any serious bids," a Manila trader says. “The Manila market is starting is get sluggish already,” a Singapore trader says. Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet on Friday at $810-820/t cfr Manila, up $5/t on-week.
Indonesian blast furnace 150mm 3sp billet, was offered on Friday at $820/t cfr Jakarta, down from $830/t cfr on 21 March. “Domestic rebar sales are still slow in Jakarta,” a Jakarta mill manager says. Similar size and grade billet from China is offered at $825/t cfr Jakarta.
A Chinese trader offered on 24 March 40,000t of Iranian 150mm 3sp billet at $765/t cfr Thailand for prompt shipment. “The vessel is now at nearby Singapore and will arrive Koh Sichang in next 4-5 days,” a Bangkok trader says. There are no takers so far because Thai buyers are bidding at $750/t cfr maximum, he adds. This cargo was diverted because of problems at its original destination port in China.
Chinese ports are facing congestion and manpower shortages because of the Covid surge and lockdowns. “We are very careful for shipments of new orders. Some mills are asking for delays for shipments dates because of difficulties in transportation and logistics,” a Chinese trader says. All Chinese ports are affected including Tianjin, Tangshan and Shanghai, he adds.
Source:Kallanish
