Posted on 27 Aug 2021
Rerollers in the Philippines resumed import buying of billet earlier this week, Kallanish notes.
In Manila, three parcels of Vietnamese billet were ordered at $675-680/tonne cfr. The orders were for 25,000t and for two 10,000t cargoes for late-September and early-October shipment. The booking price was $640/t fob Vietnam, Vietnamese trading sources say. The delivered cost includes the freight cost from Vietnam of around $30/t, other handling costs and margins, Kallanish understands.
Except for 5,000t of the orders which were for 3sp grade billet, the remaining 40,000t was for 5sp grade billet. The rerollers placed the bookings because they have pending contracts to produce rebar for high rise buildings, a Manila trader says. They do not want to buy but they have an obligation to serve the contracts, he adds. Buyers were bidding at $670/t cfr Manila last Friday.
In China, Indonesian blast furnace 3sp billet for October shipment was ordered at around $675/t cfr earlier in the week. The buying mood changed again on 26 August on account of the fall in the Chinese steel futures. “Today prices have dropped. There is no bidding today,” a Chinese trader says. The market could remain volatile, he adds. The above-mentioned Indonesian mill’s current offers are tagged at $680/t cfr China.
Source:Kallanish
