SE Asia: Imported billet market remains silent amid higher offers, Chinese holidays

The imported billet market in Southeast Asia remained quiet this week due to the absence of tenders. Chinese market participants were inactive, coinciding with the ongoing holidays in the first week of October. Traders noted that the billet market is adopting a wait-and-watch strategy amid uncertainty stemming from the lack of activity in the Chinese futures market.

"Some trade sources are reporting that Chinese billet offers have risen to $500-510/tonne (t) FoB. However, I'm unsure about the authenticity of this information, as there is no active futures market. It seems difficult for anyone to buy or sell without that market in place," highlighted a trader.

BigMint's bi-weekly assessment of billets (150 x 150 mm, 3SP) imported by the Philippines rose by $40/t to $505/t w-o-w CFR Manila on 4 October. Billet import offers stood at the range of $500-510/t CFR Manila.

Market highlights

• Vietnam's billet export offers rise w-o-w: Vietnam's blast furnace (BF)-grade billet export offers rose by $35/t w-o-w to $500/t FOB.
  
  
• Thailand's billet import offers were recorded at $490-495/t CFR, inching up by $5/t w-o-w.
  
  
• Indonesia billet offers were heard around $480-485/t FOB.
  
  
• Chinese billet market remained muted amid ongoing Golden Week holidays from 1-7 October. Market participants are exercising caution in trading due to the absence of a futures market. Notably, billet prices in Tangshan were at RMB 3,050/t ($435/t) as of 27 September, inclusive of 13% VAT.
  
  
• Iran billet market awaits tender conclusion: Iranian billet market witnessed an export tender this week, market participants are awaiting its conclusion for price clarity. Khouzestan Steel Company (KSC), the leading Iranian billet player opened an export tender for 30,000 t of billets and slabs, BigMint learnt from its sources. The delivery is scheduled for December 2024.