Posted on 10 Jan 2022
The billet import market in Southeast Asia was quiet during the first week of the new year, Kallanish understands. Regional buyers are passive due to the uncertainties caused by the new wave of Covid-19 infections spreading in the region.
An Indonesian mill was active earlier in the week with sales of 150mm 3sp billet to China and Indonesia at $615/tonne cfr. Some trading sources hear the tonnages booked totalled 90,000 tonnes.
The Indonesian mill’s offer is still at $615/t cfr China or Philippines. Russian 130mm 5sp billet for March shipment is currently offered at $630/t cfr Manila. Last month, another Russian mill sold 26,000t of 125mm 5sp billet for February shipment at $630-635/t cfr. Importing and trading sources say they had not heard of any deals taking place during the week. “I would expect a lukewarm response for now since business is not good,” a Manila importer says.
A leading Vietnamese mill is offering 5sp billet at $620/t fob. This is equivalent to $645-650/t cfr Manila as freight costs around $25-30/t, a Vietnamese trader says. Market sources say the mill has high inventories. Most Vietnamese mills have taken a wait-and see approach on export sales, a Vietnamese mill source says. The domestic billet price is the equivalent of about $630-640/t, so there is “no sense to export”, he says.
In Thailand, Indian 150mm 1sp/5sp grade billet is offered at $635/t cif. A trader says his customer gave a bid at only $610/t cfr. An Iranian mill is offering 5sp billet at $607/t cif Thailand. Demand is weak because of the lack of business confidence due to the new Covid outbreak, a Thai trader says.
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet on Friday at $630/t cfr Manila, down $5/t on-week.
Source:Kallanish
