Posted on 12 Oct 2022
Domestic scrap prices continue to rise in Thailand, Kallanish notes. Thai billet is firm, whereas Thai mills are finding it difficult to hike domestic rebar, Thai trading sources say.
Leading domestic Thai mill operators are currently buying busheling – similar to plate & structural (PNS) scrap – at THB 14,700-15,500/tonne ($386-407/t) effective 11 October, up THB 300-500/t. Domestic scrap prices have continuously been rising since August. In early August, busheling was tagged at THB 12,500-13,300/t.
Mills have been trying to push up rebar prices. The list price for 16mm and up diameter induction furnace rebar is at THB 21,700/t, while same-diameter electric arc furnace rebar is up to THB 22,400/t. Domestic rebar demand remains weak, due mainly to the current wet season. “There is flooding in more than 30 cities,” a Bangkok trader said on Tuesday. He notes it is hard for rebar prices to rise, but Thai mills have been exporting billet.
Chinese traders have been selling Thai billet to the Philippine market on and off over the last few years, observe Thai and Philippine trading sources. “They usually take positions and only back-to-back occasionally,” a Manila trader says. “The mills sell to Chinese traders on a fob basis to the Philippines,” the Bangkok trader says. “They take positions at least two weeks in advance before they start to resell the billet cargoes. Sometimes, it can be longer than four weeks.”
There has been very limited Thai billet import activity recently, apart from Iranian-origin material which is the most competitive source. Offers are currently at around $520/t cif. But a 12,000-tonne cargo of 3sp billet for November shipment was heard booked at $505-510/t cfr last Friday. "It was probably a trader's position," another Thai trader says.
Thai mills are currently offering locally-produced induction furnace billet at THB 20,500/t ($538) and EAF billet at a minimum of THB 21,000/t, local trading sources say. All mills' prices are on an ex-mill basis.
Source:Kallanish
