SE Asia: Imported billet market low amid bid-offer disparities

South East Asia's imported billet market is slow due to slow movements in the finished long steel sector. Billet prices saw a significant fall w-o-w amid bearish market sentiments. Bid-offer disparities, falling global scrap prices and weak finished steel demand in the region weighed on the billet import market and prices, SteelMint understands.

A decline in rebar futures has also pulled down imported prices. China's SHFE rebar futures for October 2023 contract stood at RMB 3,600/t ($519/t) on 12 May, a w-o-w fall of RMB 22/t ($3/t).

SteelMint's bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $520/t CFR Manila, stable w-o-w.

Market highlights

• Vietnam's billet export offers down w-o-w: Vietnam's BF-grade billet export offers moved down by around $10/t w-o-w to $490/t FOB.
  
  
• Thailand's imported billet prices inch down w-o-w: Imported billet prices into Thailand inched down by around $5-10/t w-o-w to $530-535/t CFR.
  
  
• Iran's billet export prices under pressure: Iran's steel billet export prices remained under pressure and tenders floated for billet exports fetched limited response and low bids. Low demand from key importing nations, a steep drop in Turkiye's imported scrap prices and a decline in bids weighed on the billet export market, SteelMint notes. Market sources highlighted that bids are currently around $460/t FOB. However, mills were still looking for prices at around $470/t FOB. Notably, current indications are lower by $20-30/t w-o-w.