Posted on 25 Oct 2021
Billet destined for China has surfaced in the Philippines and Thailand, Kallanish understands. Suppliers are offering material in Southeast Asia after the recent slump in the Chinese billet market.
Traders and importers reported receiving offers on Friday at $700-710/tonne cfr Manila, the day after a sharp downward price correction in Chinese steel markets. The offers are for 150mm 3sp blast furnace billet from ASEAN mills for November and December shipment. A buyer reports blast furnace billet offers at $700/t cfr Manila for Vietnamese material and $710/t cfr for Malaysian material.
Traders say these offers will not find takers in the Philippines. "Traders are asking for bids for 150mm billet and these are all positions for the Chinese market," one says. "We use little 150mm billet.”
For 150mm sized billet, the Philippine market always uses the 5sp modified grade, another says. Earlier on Friday, he saw an offer for 20,000 tonnes or 30,000t of Malaysian 120mm/150mm 3sp/5sp billet at $715/t cfr Manila. The offer was for either November or December shipment.
Another Manila trader expects more billet offers in the coming days until the Shanghai Futures Exchange rebounds. “But it’s a Friday, while the bloodbath [in the Chinese steel market] has not abated. Customers will wait for the dust to settle,” he said on Friday.
Philippines buyers’ price expectations were at $690/t cfr earlier in the week but this is probably lower now since regional buyers take their cue from the Chinese market, a regional trader says. A leading Philippine re-roller ordered Russian billet at $693/t cfr and at $725/t cfr during the week through 15 October.
In Thailand, a buyer concluded a purchase for 10,000t of 150mm 3sp billet from Iran at $690/t cif on 21 October. The cargo is a prompt shipment and had originally been destined for China. Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet on Friday at $690-700/t cfr Manila, down $20 on-week.
Meanwhile, the spot billet market in Tangshan continues its descent. Prices fell on Friday by CNY 100/t ($16/t) on-day and CNY 260/t on-week to CNY 4,990/t. Prices last dipped below CNY 5,000/t on 30 August.
Source:Kallanish
