SE Asia billet import prices hit a six-month high

On the back of increasing scrap prices and active Chinese buying, SE Asia billet import prices have hit six months high. Turkey imported scrap prices have increased post-Eid holidays and are hovering at seven months high. US HMS (80:20) prices are hovering at $285/t CFR Turkey.

This week's SteelMint assessment of billet import offers in the SE Asia is at $430-435/t CFR Southeast Asia, up by $8-10/t, while bids are around $420/t.

The buyers are anticipating a price drop and are in a wait-watch situation, said a source. Currently, the billet demand is slow in the region and is served through the regional or local mills, he further added.

However, in some countries, import prices are still higher than domestic prices. For instance, the local billet prices in Indonesia are at IDR 6500/kg (~$439/t), while import offers are at $430/t, CFR, SteelMint learned from trade sources.

SE Asia billet import stats

The billet imports in SE Asia witnessed a continuous fall during H1 CY' 20, except for Mar'20. The import drop was primarily due to the COVID-19 outbreak, however, the demand in the region had started reviving since the end of May'20, and as the rains hit, it again turned sluggish.