SE Asian importers are wary in firm billet market
Billet import prices are holding firm at $450-460/tonne cfr in southeast Asia. Some 50,000 to 60,000 tonnes of Russian-origin 3sp/ps billet for September/October shipment was booked at $450/t cfr Philippines during the week ending 10 July, trading sources tell Steel Business Briefing. A Taipei-based trader describes the supplier for this deal as "hungry for orders" and sold at this attractive price because
it was "looking for the quantity." Nobody is buying at a higher price "because there is little room for the rerollers at current domestic debar prices," a Manila-based trader explains. Russian-origin 5sp/ps billet is being offered at $460-470/t cfr to the southeast Asia region, Taiwanese material at around $10/t more. "Buyers will have to pay $460/t cfr if they want to buy billet today," a Vietnamese trader notes. However, many Vietnamese importers are cautious about paying these high prices. Those in northern Vietnam have raised their bidding price to $450-455/t cfr, up from the previous week's $440/t cfr but it is hard to find supply at this level. Some 20,000 tonnes of Russian 5sp/ps billet was booked at $465/t cfr Vietnam recently, another trader claims. He believes that prices are on the uptrend. Local importers will have to accede to high prices when they return to book material in some weeks' time, he says. However, a regional trader in Singapore disagrees, saying falling crude oil prices will soften commodity prices in general, and the strengthening of the US dollar against local currencies will adversely impact import demand for steel. He adds that mills appear to be more willing to negotiate over bids this past week.
Billet import prices are holding firm at $450-460/tonne cfr in southeast Asia. Some 50,000 to 60,000 tonnes of Russian-origin 3sp/ps billet for September/October shipment was booked at $450/t cfr Philippines during the week ending 10 July, trading sources tell Steel Business Briefing. A Taipei-based trader describes the supplier for this deal as "hungry for orders" and sold at this attractive price because
it was "looking for the quantity." Nobody is buying at a higher price "because there is little room for the rerollers at current domestic debar prices," a Manila-based trader explains. Russian-origin 5sp/ps billet is being offered at $460-470/t cfr to the southeast Asia region, Taiwanese material at around $10/t more. "Buyers will have to pay $460/t cfr if they want to buy billet today," a Vietnamese trader notes. However, many Vietnamese importers are cautious about paying these high prices. Those in northern Vietnam have raised their bidding price to $450-455/t cfr, up from the previous week's $440/t cfr but it is hard to find supply at this level. Some 20,000 tonnes of Russian 5sp/ps billet was booked at $465/t cfr Vietnam recently, another trader claims. He believes that prices are on the uptrend. Local importers will have to accede to high prices when they return to book material in some weeks' time, he says. However, a regional trader in Singapore disagrees, saying falling crude oil prices will soften commodity prices in general, and the strengthening of the US dollar against local currencies will adversely impact import demand for steel. He adds that mills appear to be more willing to negotiate over bids this past week.
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