Posted on 15 Jun 2020
Suppliers continued to maintain firm offers for billet in Southeast Asia, Kallanish notes. But Southeast Asian importers are generally slow to book because regional demand for construction steel is still weak.
In Manila, offers for billet are prevailing at $405-415/tonne cfr during the week. On Thursday, Black Sea billet for July shipment is offered at $405/t cfr and bids were invited for Far East Russian billet for September shipment at $410/t cfr. Traders were also offering Indonesian blast furnace billet for shipment by 15 August at $415/t cfr Manila. The $415/t cfr offer is "definitely" too high, says a regional trader who has not heard of recent deals taking place in the region. Weak billet demand is due to sluggish finished product prices, he says.
Current offers are high and buyers are aiming to book at $400-405/t cfr, a Manila trader says. “It is a hard sell” above this price range, he adds. As rerollers have accumulated inventories from the recent two-month lockdown, they may consider offers which are not for immediate shipment, he adds.
Some 70,000t of Far East Russian 100mm and 150mm square billet were booked at $400/t cfr Philippines during the week ending 5 June and these were for September shipment. Indian blast furnace billet for end-July/early-August shipment booked during the same week of 5 June at $406/t cfr Manila. On Friday, Kallanish maintained its 5sp/ps or Q275 120/125/130mm square billet assessment at $400-405/t cfr Manila.
Meanwhile, Iranian billet imports were offered during the week at $390-395/t cfr Ko Sichang, Thailand. The offers are under negotiation, say Thai trading sources. Fixtures for Iranian billet took place at $383-385/t cfr Thailand one-two weeks ago.
Source:Kallanish
