SE Asia: Billet import offers rise w-o-w, bid-offer disparity limits trade

Southeast Asia's imported billet offers rose this week. Billet import offers for 5 SP grade were heard at around $550-565/t CFR Manila, up by $10-15/t w-o-w. Meanwhile, bids for 5 SP was around $540/tonne (t) CFR, rising by $10/t w-o-w on 12 January.

Meanwhile, Turkiye's imported scrap prices have risen this week. According to SteelMint, HMS 1&2 (80:20) prices from the US stood at $425/t CFR, a rise of $4/t w-o-w.

Turkish deep-sea imported ferrous scrap prices witnessed an overall uptrend as Turkish mills resumed imports. The strong demand for domestic long steel (rebar) remained a key driver behind the increased scrap-buying activity among Turkish mills for February deliveries.

However, Chinese billet prices fell by RMB 60/t ($8/t) to RMB 3,600/t ($506/t) on 12 January against 5 January. Volatile sentiments from rebar futures, finished steel and raw material prices have put pressure on billet prices. Meanwhile, Chinese SHFE rebar futures inched down by RMB 77/t (11/t) w-o-w to RMB 3,902/t ($589/t) today.

Market highlights:

• Thailand's imported billet offers rise: Imported billet offers from the ASEAN region into Thailand were recorded at $545-550/t CFR.
  
  
• Iranian billet export market lacks clarity on uncertainty over duties: Iran's billet export market was sluggish owing to dull export trading this week. Recently, billet exporters were preferring to opt for a wait-and-watch mode, as the Iranian government may minimise the export duty on semi-finished products, including billets and slabs - from 2% to 1% in the near future. Meanwhile, in the domestic market, gas shortage issue during winter continued to impact production. An Iranian steel mill has concluded an export tender for 30,000 t of billets, sources informed. The deal was heard concluded at around $487-488/t FOB.