Posted on 21 Mar 2022
Bullish exporters continue to press for higher billet prices in Southeast Asia, Kallanish notes. However, they are being shunned by regional importers.
Chinese billet export offers surfaced in the region in the past week amid widespread Covid-19 outbreaks in China. A leading Philippines re-roller ordered Chinese 150mm 5sp blast furnace billet for April shipment on 16 March at $810/tonne cfr. Offers for similar grade and size Chinese billet rose to $820-830/t cfr Manila the next day. "EAF billet prices should be really high because of scrap. But those produced by blast furnace, $800 should be okay," a Manila trader says.
Offers for 3sp grade Chinese billet are at $830/t cfr Thailand, up from $810/t cfr on Wednesday. A Thai trader says he has not received any bids. "There is a big price gap because debar prices are slowly rising in Thailand,” he adds.
Blast furnace billet from Malaysia was raised to $830/t cfr Manila early last week to nearly $845-850/t cfr. After the Chinese billet booking at $810/t, a regional trader says he was unable “to get bids anywhere that close”. This is so especially with Thai induction furnace billet sales mid-week at $765/t cfr Manila, he adds. Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet on Friday at $810/t cfr Manila, up $10/t.
But Thai induction billet offers have risen too. Quotes are at $780-790/t cfr Manila for 130mm 5sp grade billet. Buyers still indicate they want to pay $765-770/t cfr, a Manila trader says. A Thai trader reports a firm bid for 130mm 3sp Thai induction furnace billet at $720-725/t fob Thailand. But his mill has sold out April-shipment allocations and will offer May shipments later this month.
“I think traders are fishing for bids at $820/t cfr,” says a Malaysian mill manager. He received an offer for 3sp billet from Qatar, Indonesia or India at this level on 17 March. Billet offers are too high and merging with local bar prices, he notes. Malaysian rebar is prevailing at RM 3,450/t ($823/t) delivered.
A Chinese trader is offering a position cargo of Russian 125mm billet at $820/t cfr Philippines, despite potential LC-opening problems in the country. There is also market chatter that Russian EAF billet is offered at $770/t cfr Asia. “It is probably a trader trying to get bids because buyers seem to be on the sidelines now,” a regional trader opines.
Source:Kallanish
