Posted on 17 Aug 2020
The slowdown in the Chinese billet import market has spread to Southeast Asia, Kallanish notes. Southeast Asian buyers are anticipating billet import prices will come down.
“China is the only driver of billet price increases; if China stops buying, then the same material has to be sold cheaper elsewhere,” a Philippine re-roller said on Friday.
Russian 125mm square billet was offered at $428/tonne cfr Manila on Thursday, importing sources report. A Manila trader reports the cargo was booked at $427/t cfr. It was an October shipment and would be for 20,000 tonnes.
The market is really full of material, another trader says, adding that Philippines customers had delayed shipments because of the pandemic. Suppliers offering material now have to consolidate orders of around 5,000t from different buyers.
Vietnamese induction furnace billet for September shipment was booked early in the week at $431-432/t cfr Manila, Vietnamese sources say. The price tag surprised Philippine sources because induction furnace billet is usually priced lower than blast furnace and electric arc furnace billet.
A trader says he could not confirm the deal but adds that the Russian billet offer was perhaps priced lower because it was for a limited tonnage. Others say the timing of the deals could affect the transaction prices.
A Vietnamese trader says that, while the booking price sounds “…incredible”, buyers wanted to get material quickly because they feared the market would continue to rise.
On Friday, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $425-429/t cfr Manila, up $2 on-week.
Source:Kallanish
