SE Asia: Imported billet offers range-bound w-o-w amid strong buying interest

The Southeast Asian imported billets market remained robust this week. As per sources, billet exporters are active amid strong buying interest and less competitive offers from Chinese steel mills. Billet tender conclusions were witnessed in the market this week, keeping prices supported.

According to sources, billet import offers remained at the same levels w-o-w at $525-530/tonnes (t) CFR Manila. In addition, bids were recorded under $525/t CFR Manila. However, as per sources, some deals were heard concluded in the range of $520-525/t CFR Manila last week.

Meanwhile, Turkish imported scrap prices remained largely stable as buyers kept quoting lower due to weaker domestic steel demand whereas US recyclers resisted due to slow scrap inflows which saw around five to six cargoes getting booked from the US and EU regions. Mid-week, Turkiye's imported scrap prices remained range-bound as most steelmakers are avoiding the imported material due to sluggish trading in the long products segment. BigMint's assessment for US-origin HMS (80:20) bulk scrap stood at $380/t CFR -- largely stable with a mere $1/t rise w-o-w.

Market highlights:

• Vietnam's billet export offers for BF mills were recorded at the same levels of around $515-520/t FOB Vietnam this week. Meanwhile, a Vietnam-based steelmaker concluded a deal of 50,000 t of billets at around $495/t FOB Vietnam.
  
  
• Thailand's imported billet offers remained stable in a range of $525-530/t CFR this week.
  
  
• China's steel billet prices inch up w-o-w: Billet prices in Tangshan inched up by RMB 60/t ($8/t) w-o-w to RMB 3,560/t ($491/t) on 24 May, 2024 against 17 May. Prices include 13% VAT. Volatility in finished steel prices and increase in rebar futures kept supporting billet prices. SHFE rebar futures (October, 2024 delivery) increased by RMB 72/t ($10/t) w-o-w to RMB 3,788/t ($523/t) on 24 May, 2024.