SE Asia: Imported billet market continues to remain silent amid bid-offer disparities

South East Asia's imported billet market sentiments continue to weaken on low buying interest. The weakness stems from the subdued finished steel market in the region, bid-offer disparities and falling global scrap prices, SteelMint understands.

SteelMint's bi-weekly assessment of BF-route billet (150x150mm, 3SP) imported by the Philippines currently stands at around $525/tonne (t) CFR Manila, up $8/t w-o-w. Offers are at around $550/t CFR. However, bids continue to remain on the lower side and were heard at around $510/t CFR levels. With a recovery in global scrap prices, billet prices may also find support, stated market participants.

Market highlights

• Vietnam's billet export offers unchanged: Vietnam's BF-grade billet export offers stood at around $495/t FOB, stable w-o-w. However, no deals were heard concluded this week.
  
  
• Thailand's imported billet prices inch down: Indicative imported billet prices into the country are hovering at around $520/t CFR, down $15/t w-o-w. Weak demand and falling finished longs prices in the region, due to the onset of monsoon, continue to weigh on billet import prices.
  
  
• Indian billet export market inactive: Indian BF-grade billet export trade continued to remain inactive as buyers kept away. Steel mills in India are not ready to sell at lower rates as they are getting a better realisation in the domestic market. State-owned Vizag Steel had floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery basis against an irrevocable letter without recourse to drawer international letter of credit payable at sight terms. The due date for the tender was 2 August 2022. According to market sources, the tender failed to receive an active response.
  
  
• Iranian billet export prices drop further in recent deal: Iran's billet export market remained less active this week with prices falling further in recently concluded deals. Declining global scrap prices, low bids, and limited trade have pulled down billet export prices, SteelMint notes. An Iranian mill concluded an export deal for 25,000 t of steel billets at around $450/t FOB, sources informed SteelMint. The shipment is likely to be scheduled for September 2022. Prices have corrected downwards by around $10/t as against the last concluded tender at the beginning of this week. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $460/t FOB on 2 August, a fall of around $13/t w-o-w.