Posted on 07 Nov 2022
The importing billet markets in Southeast Asia continue to be sluggish, Kallanish notes. Sliding offer prices have caused regional buyers to withdraw and delay placing orders.
Offers for 150mm 3sp grade billet are prevailing at $490-495/tonne cfr Manila and for 120/130mm 5sp at $500-505/t. These are traders’ offers for open-origin billet to be sourced from ASEAN or China. Induction furnace billet from Vietnamese mills is also offered at $490/t cfr Manila. These prices are roughly $10/t lower than 28 October.
The Philippine market is “very, very, very poor,” a Singapore trader says. Buyers are staying away because it is a falling market with no clear signs of support. "Who is crazy to buy on a downtrend market?" a Philippine trader asks. "Everyone is hurting right now. This time everybody is having liquidity and demand problems," he says.
Another notes in addition to the softening market, there is also currency depreciation, rising interest rates, slowing demand, poor economic forecasts and a looming recession, and the approaching Christmas season. He is hopeful though that prices could stop falling soon. “The Chinese paper market is showing signs of life lately,” he adds.
While a Manila importer does not think that there are buyers in the market, he does not discount that a leading reroller or other smaller mills might need to replenish stocks. Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $500-505/t cfr Manila, down $15 on week
In Thailand, a cargo of Chinese 150mm 3sp billet was heard ordered on 28 October at $500/t cif. Chinese billet is currently offered at $500/t cif. A previous offer heard at $490/t cif earlier this week has been withdrawn, a Thai trader says Friday, Malaysian and Indonesian blast furnace 5sp billet is heard offered at $510-515/t cif.
Source:Kallanish
