Posted on 04 Dec 2023
The Manila billet market is soft but firm raw materials and a rebound in Chinese steel futures could provide support for the market, Kallanish notes.
Offers for open-origin Chinese/ASEAN blast furnace 5sp 150mm grade billet for January shipment dipped to $530-535/tonne from $535-540/tonne cfr on Wednesday. Offer prices were at $540-550/t cfr on 24 November.
Direct offers from the ASEAN blast furnace mills, including an Indonesian mill, were at $515/t fob. Freight from Indonesia to Manila is around $20/t and 5sp billet is $8-10/t higher. During the week, Indonesian and Malaysian billet was sold to Turkey and last traded at $515/t fob, traders report.
Buying interest is weak, they say. A Manila trader says: “I have not heard [of bookings] and doubt that there’s any.”
“The market mood is negative,” a regional trader says. “However, I have large doubts whether they can buy 125/130mm square 5sp billet at cheaper prices from blast furnace or EAF mills,” a regional trader says. “Resources are too tight,” he adds. However, this is not the case for 3sp billet because of many local induction furnace mills in the Philippines which are selling material at PHP 30,000/t, equivalent to $480/t cfr, he adds.
The price outlook remains uncertain, another regional trader says. He notes that the regional mills “pulled offers” because it was Friday and the SHFE rose sharply. He expects offer prices will be “refreshed” on Monday.
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $530/t cfr Manila, down $2.5 on-week.
Source:Kallanish
