Posted on 15 Aug 2022
The ASEAN billet market continues to be lacklustre with most buyers staying on the sidelines, Kallanish notes. Exporters’ offer prices are steady for blast/electric arc furnace billet. Thai-origin induction furnace billet prices rose on rising domestic scrap.
Offers for EAF/blast furnace billet imports were at around the same levels on-week, at $540-550/tonne cfr Manila. Traders say they see scarce buying interest. A Manila trader observes he did not receive any bids last week.
Buyers want to book material but are unwilling to pay for material at this level yet, a Singapore trader says. “They are scared that prices will go down,” he says. He sees a “slight pick-up” amid the improved Chinese steel market and price gains made in international scrap markets.
Another says the market remains inactive because bids are too far from offers. He notes, though, that induction billet has risen because domestic scrap “rose very quickly towards $370 in Thailand”. This is the import equivalent for Busheling grade scrap. Buyers are bidding at $530-535/t cfr Manila for EAF/BF billet and at $520-525/t cfr for induction furnace billet, a regional trader reports.
A 10,000-tonne cargo of Thai-origin induction furnace billet was ordered at $520/t cfr Manila earlier last week. Prices rose quickly from $510/t cfr Manila to close in a deal at $520/t cfr on 8 August, a Thai trader says. Prices continued to rise to $525/t cfr the following day and stood at $540/t cfr on 11 August, he adds.
He did not hear of any induction furnace billet booking above $520/t cfr. However, another regional trader reports hearing that a maximum of 5,000t of Thai induction furnace billet was transacted at $525/t cfr Manila on 8 or 9 August.
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $535-540/t cfr Manila, up $5/t on-week.
The main Indonesian exporting mill is offering 150mm 5sp blast furnace billet at $550/t cfr Jakarta. “But it could be lower with firm bids,” a mill manager says. He hears the mill was seeking to fill up a vessel for end-August shipment.
Source:Kallanish
