SE Asia: Imported billet prices under pressure amidst limited deals

South East Asia's imported billet prices remained under pressure this week amid limited deals. SteelMint's bi-weekly assessment of blast furnace (BF)-route billets (150*150 mm, 3SP) imported by the Philippines remained range-bound at $515/t CFR Manila. An import deal has been concluded for 20,000 t of 5sp billet of Saudi Arabia-origin to Philippines at $522/t CFR, SteelMint noted.

However, domestic billet prices in China's Tangshan rose by RMB 50/t ($7/t) w-o-w to stand at RMB 3,650/t ($510/t), including 13% VAT, on 28 July.

As China's billet prices have been increasing amid production cuts and expectations of economy stimuli, SE Asia importers have been focusing towards alternative origins, in particular, the Middle East and Russia.

Buying tendency for imported billets in Southeast Asia has weakened this week because buyers have sourced enough material last week. A number of deals have still been concluded in the market, with offers dipping slightly.

Meanwhile, Turkiye's imported scrap prices saw a marginal change w-o-w. According to SteelMint's latest assessment, HMS 1&2 (80:20) prices from the US edged down by $5/t w-o-w to $350/t CFR Turkiye.

Market highlights-

• Vietnam's billet export offers stable w-o-w: Vietnam's BF-grade billet export price idea stands stable w-o-w at $515/t FOB. However, mills are also trying to offer higher at $530/t, FOB.
  
  
• Thailand's imported billet prices rise: Imported billet prices into Thailand rose by $5/t to $520/t CFR.
  
  
• Iranian billet export prices under pressure: Iran's steel billet export market is witnessing a price decline after the recently imposed export duty. Steel billet prices dropped by $10/t w-o-w to stand at $473/t FOB. An export tender has been floated for 30,000 t of billets by a mill with due date on 1 August 2023. The shipment is scheduled for October.