Though a few deals have been done in Southeast Asia’s import billet market at the previous price levels, most market sources are waiting for a further price decline, especially because the trend is still cautiously negative in China.
A deal for 10,000 mt of open origin 5SP 130 mm billet was done to the Philippines at $490/mt CFR late last week. This price translates to $485/mt CFR at the highest for 150 mm billet. There have not been many offers for 130 mm billet lately, and, since it is the most popular billet in the Philippines, prices are higher for this size.
Another deal for 3SP has been heard to Thailand at $485-490/mt CFR, with payment deferred for 60 days.
“China’s official offers are down to $460/mt FOB, so traders can sell short,” a Singapore-based trader said. The freight from China to Southeast Asia is $17-24/mt, depending on the country.
At the same time, most buyers are waiting for $480/mt CFR in the short term, especially if the mood in the Chinese market remains negative. The Southeast Asian import billet reference price is down by $2.5/mt from last week at $475-490/mt CFR, until more deals are done.
The official offer of ex-Indonesia billet stands at $485/mt FOB for February shipment, while the latest deal was done at $475/mt FOB late last week.