Posted on 20 Apr 2022
The Southeast Asian billet import market is showing signs of price softening, Kallanish understands. Buyers are, however, not biting yet.
The higher-end of the offers generally at $800-830/tonne cfr Manila last week have come off. Offers for EAF 130mm square billet sourced from the region are prevailing at $810/t cfr Manila. Regional 130mm blast furnace billet are now offered at $810-820/t cfr Manila, depending on the steel chemistry. The billet market has “definitely” softened, a Manila trader says. "We are not seeing offers as high as $840/t cfr anymore.”
While there is a slight price softening, “everything is basically the same with no drastic action from buyers nor sellers,” a buyer says. Buyers are probably looking to book lower since scrap appears to be softening now. But he thinks buyers make their purchases if their inventories are running low.
Buyers would want to book at under $800/t cfr, but there is nothing available at this level yet, a regional trader says.
“Regular induction furnace billet would be offered closer to $800/t cfr,” he adds. There are several offers for lower-grade induction furnace billet. An offer for SD295 grade is prevailing at $780/t cfr Manila. “But there’s hardly any demand for that here,” the Manila trader says.
The market has softened because of slow demand, another regional trader says. “But I don't think there's much scope for prices to go down because raw materials are still firm,” he says.
Meanwhile, suppliers continue to divert billet from Oman from its original destination of China to Thailand. A 42,000t cargo of 150mm 5sp billet, currently on the water, is being offered at $750/t cif Thailand. Traders report that there are no bids for the cargo yet. It would be hard to sell at this level in Thailand because the domestic market’s price level is around $760/t, a trader says.
Such diverted cargoes were offered in last March and early April and were booked at $750-765/t cif Thailand. Traders say that the suppliers are reselling the cargoes to enjoy higher profits. Oman's cargoes are generally believed to be actually Iranian cargoes.
Source:Kallanish
