Southeast Asian billet market advances

Posted on 07 September 2020

The Southeast Asian billet import market remains strong, Kallanish notes. Several deals have transpired as importers are acceding to the higher prices sought by suppliers.

Russian 125mm square billet was booked on Thursday at $445/tonne cfr Manila. An importer believes it is a position cargo, as it is due for prompt, early-October shipment. He describes the market as firm and says offers are “…most likely moving up.” Also, 15,000 tonnes of 100mm square billet from another Russian mill was ordered at $440-445/t cfr Manila at the end of the week.

A position cargo for October shipment of Indian blast furnace billet was offered at $445/t cfr on Friday, trading sources report. Offers for Black Sea billet and EAF billet from Vietnam are also heard at $440/t cfr Manila, Philippine trading sources say. Vietnamese trading sources said on Friday there are no more offers at $440/t cfr Manila. EAF and blast furnace billet from Vietnam is offered at $450/t cfr and $460/t cfr respectively, they added.

Buoyant Chinese import buying has provided support for billet prices in the region. Regional blast furnace billet from Vietnam, Indonesia and Malaysia has been exported to China in the last two weeks at $430-435/t fob. Vietnamese material is now offered at $450/t fob.

A leading re-roller in the Philippines is believed to have booked 10,000t of Vietnamese EAF 150mm billet at $440/t cfr during the week of 28 August. It simultaneously ordered Indonesian blast furnace 150mm square billet at $442-443/t cfr. Some sources, however, believe the higher-priced cargo was probably destined for Davao, which has a higher freight charge than to Manila.

On Friday, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $440-445/t cfr Manila, up $7.5 on-week.

Source : Kallanish