SE Asia: Billet Import Offers Range-Bound, Recovery Anticipated

The billet import offers in the SE Asian regions have remained range-bound this week. Market participants expect increased global scrap prices supported the region's billet market sentiments.

After the sharp surge observed earlier in the week, the imported scrap prices to Turkey continue to move up in recent booking, on account of tight supply. With European and American recyclers operating partially with lesser workforce due to COVID-19 restrictions, the inflow of scrap to yards is very slow, with a low collection rate. Hence, unlike last month, suppliers are in no compulsion to clear their stock selling at low rates, resulting in the sharp hike in workable price.

Meanwhile, the billet import offers in Thailand from India were noted USD 370/MT, CFR levels.

However, SteelMint's assessment for SE Asia billet import is assessed at USD 365-370/MT, marginally down USD 5 against last week.

Vietnam- The billet export offers from the country were noted at USD 380/MT, FoB levels. However, it is not a workable price in the current scenario.

CIS billet export offers likely to rebound following scrap price upturn- CIS billet export assessment was reported to witness a marginal decline early this week and were seen at USD 325-330/MT, FoB Black Sea but later have moved up by USD 5/MT and is presently seen at USD 335/MT, FoB Black Sea. Trade participants expect mills to raise offers following a recent rebound in Turkish imported scrap prices by around USD 25/MT.