Posted on 10 Oct 2022
The billet import market was calm in Southeast Asia last week, Kallanish notes. Offers were hiked on anticipation that the market will lift this week when China reopens after its holiday. But importers continue to be cautious about paying more.
Limited offers for regional 5sp 130mm blast furnace billet for November shipment are heard at $540-545/tonne cfr Manila, up $5/t on-week. During the week ending 30 September, traders, including in China, were offering position cargoes for Indonesian billet as well as for 120/130mm billet from two Malaysian mills at $535-545/t cfr.
A Manila trader saw on Friday a supplier inviting bids for Malaysian 120mm 3sp blast furnace billet for November shipment at $533-535/t cfr Manila, against the offer of $537/t cfr. Another wondered if customers would just wait since it was the end of the week. He notes that suppliers have either withdrawn from the market or are targeting higher prices in anticipation of a price upswing after the Chinese holiday. “It’s [October price hikes] the trend historically. Whether this trend will hold true this year is a question though," he says.
Some trading sources report receiving bids at around $535/t cfr Manila. There is market chatter that a cargo for blast furnace billet for November shipment closed at $535/t cfr on 6 October. However, apart from a local trader who heard of the deal, other market participants were unaware of the booking.
An Indonesian blast furnace mill is directly offering its 3sp billet at around $515/t fob. Freight to Manila is estimated at $20-25/t. Its offer was at $540/t cfr Jakarta as of 6 October, Jakarta importing sources say. The mill's 5sp grade is around $7/t higher than 3sp grade.
During the 30 September week, Manila trading sources heard of a 40,000-tonne parcel of Indonesian 150mm 5sp blast furnace billet sold at around $530/t cfr Manila. But last week, trading and importing sources heard the particular deal had concluded at closer to $535/t cfr.
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $535/t cfr Manila, up $2.5 on-week.
Source:Kallanish
