Posted on 07 Feb 2023
The billet import market in Southeast Asia picked up momentum last week. Several deals touched $600/tonne cfr Manila, indicating that buyers were willing to pay more. However, the releasing of traders' position cargoes in the market could dent sentiment.
Regional mills’ target offer prices remain beyond the reach of buyers because of sluggish regional demand, Kallanish notes.
A 10,000-tonne cargo of ASEAN-origin 130mm 5sp blast furnace billet was heard booked at around $600/t cfr Manila on 2 February. The buyer booked the cargo for stock replenishment, importing sources say. The billet cargo is likely to be from Indonesia. The parcel is a trader’s position cargo because offers from the same Indonesian mill are currently higher, at $620/t fob for 3sp billet and for April shipment. It is currently inviting bids at $640/t cfr for 150mm 3sp billet for April shipment.
Another deal, for 20,000t of non-ASEAN 130mm 5sp billet for March shipment, was ordered at $600/t cfr Manila on Wednesday.
The current workable price in the market is $600/t cfr, a Manila trader says. A customer said on Friday he can book billet at up to $600/t cfr, a regional trader reports. Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $600/t cfr Manila, up $17.5 on-week.
Regional traders say they are receiving several such offers of position cargoes since Thursday. More such offers are expected to be released in the market “because sentiments are turning more negative in the past three days,” says a Manila buyer. He describes the market as “finicky”. The offers are causing market sentiment to soften. “Some are predicting that prices will go back to $550,” another Manila trader observes.
Source:Kallanish
