SE Asia: Billet import market silent amid bid-offer disparities

South East Asia's imported billet market sentiments weakened this week on low buying interest. The weakness stems from the subdued finished steel market in the region and bid-offer disparities, SteelMint understands.

SteelMint's bi-weekly assessment of BF-route billet (150x150mm, 3SP) imported by the Philippines currently stands at around $535/tonne (t) CFR Manila, a marginal decrease of $2/t w-o-w. Offers for Indonesia-origin BF route billets are at around $555/t CFR Manila. However, bids are yet to improve.

Market highlights

• Vietnam's billet export offers inch up: Vietnam's BF-grade billet export offers stood at around $530-540/t FOB, up by $10-20/t w-o-w. According to market sources, trade activities were mostly absent throughout the week and demand for semi-finished was also subdued. However, a hike in scrap prices pushed up billet offers. Meanwhile, some industry participants found domestic prices more attractive which stood at around $550/t exw.
  
  
• Iran's steel billet export market silent: Iran's billet export market remained silent this week with prices falling slightly w-o-w. Limited trades dragged down billet export prices, SteelMint notes. Also, economic activities in Iran are getting hampered due to political negotiations called the Joint Comprehensive Plan of Action (JCPOA). Meanwhile, Sirjan Jahan Steel Company (SJSCO) floated an export tender for 30,000 t of steel billets with the due date being 30 August. The shipment is likely to be scheduled for October. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $456/t FOB on 26 August, a marginal decrease of around $5/t, w-o-w.