Posted on 20 Dec 2022
The billet import market in the Philippines continues to rise, Kallanish understands. Suppliers and mills are continuously increasing prices in tandem with a positive Chinese steel market.
A 20,000-tonne cargo of Indonesian 130mm 5sp blast furnace billet was concluded at $545/tonne cfr Manila on 13 December, local market sources report. The January/February-shipment cargo was sold directly to a reroller. New firm offers are prevailing at $570/t cfr Manila from the above-mentioned Indonesian mill and some even hear that the mill was already planning to hike offers to $570-575/t cfr.
“The market is moving up and very fast,” a Manila trader says. There is currently lesser availability of the 130mm billet in the market due to the absence of Russian billet. Malaysian blast furnace mills appear to prefer to export 150mm billet which only a handful of Philippine mills process. The Manila market has offers for the 130mm sizes from the induction mills and Vietnamese offers were at $535/t cfr during the 9 December week.
“No mills nor traders would consider a price below $560 today,” a second trader says on Friday, adding that $545/t cfr was not representative anymore. He acknowledges that it is unclear if most customers are ready to pay this level as yet but “we are getting there fast,” he adds. “I think that the Indonesian mill will accept $560/t cfr but there are no firm bids yet,” the first trader says also on Friday.
Traders have expressed concerns that the domestic rebar market in the Philippines is not moving as fast as the sharp price hikes in imported billet. “Domestic rebar is up a little but not enough,” the first trader says. Rising interest rates will eventually affect the property business and in turn demand for steel, he adds.
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $550-555/t cfr Manila, up $20 on-week.
Source:Kallanish
