SE Asia: Imported billet offers rise on positive market sentiments
Southeast Asia’s billet import market is showing signs of improvement. Billet importers have gone into a holding pattern, watching the Chinese futures market go...
Southeast Asia's billet import market is showing signs of improvement. Billet importers have gone into a holding pattern, watching the Chinese futures market go sideways. Buyers have already secured sufficient billets, anticipating a price stabilisation in the near term. Billet import offers for 5 SP grade were heard at $530-535/tonne (t) CFR Manila, rising by $5-10/t w-o-w.
Meanwhile, Chinese billet prices rose by RMB 30/t ($4/t) to RMB 3,660/t ($507/t) on 17 November against 10 November. Hike in rebar futures and finished steel prices have supported billet prices. Chinese SHFE rebar futures rose by RMB 50/t (7/t) w-o-w at RMB 3,929/t ($544/t) today.
Rise in imported scrap prices have supported global billet offers. Turkiye's imported scrap prices have risen this week. According to SteelMint, HMS 1&2 (80:20) prices from the US stood at $385/t CFR, inched up by $8/t w-o-w.
Market highlights:
- Vietnam's export offers up w-o-w: Vietnam's BF-grade billet export offers have increased by $20/t w-o-w to $515/t FOB.
- Thailand's imported billet offers rise w-o-w: Imported billet offers from the ASEAN region into Thailand were recorded at $525-530/t CFR, up by $15-20/t w-o-w.
- Iranian billet export prices remain stable w-o-w: Iran's billet export market is expected to remain active in the upcoming week, as exporters are ready to accept lower bids in their latest deals. Strong demand in the global market and insufficient support from domestic buyers have convinced billet exporters to deal at lower price levels. Domestic billet players are showing a subdued approach, resulting in limited movement of material in the local market, SteelMint notes. However, this week, a transaction was concluded at stable price levels. Afra Iron and Steel Company floated an export tender for 30,000 t for billets, which was heard concluded at around $470/t FOB. As per SteelMint's latest assessment, Iran's billet (3SP) export prices remained stable w-o-w at $470/t FOB on 16 November.
