SE Asian billet importers await direction from China
The recent softening of China's steel markets has affected sentiment in Southeast Asia, industry sources tell Steel Business Briefing. While there is little scope for the Chinese to export billet because of the 25% export duty, the massive size of the country's steel market exerts a large influence on the direction of business being done in the wider region, traders say. In Southeast Asia limited offers are prevailing at $500-530/tonne cfr for billet from the CIS and $500-510/t cfr Philippines and $520/t cfr Vietnam for Taiwanese material. Malaysian-origin billet is being offered at $510-520/t fob. Concluded prices in the region were around $500/t cfr last week. "There are not many offers or much bidding from the re-rollers," an Indonesian buyer says. Rebar prices are flat in the country and seem likely to improve only around end-September after the Islamic fasting month, he says. "Sentiment is bad in the region because of fears of a price correction. The flats market is not doing well and domestic prices in China have been falling," a trader in the Philippines warns. Little billet buying is taking place because Vietnamese importers are waiting to see what will happen next to the Chinese market. "The impact of China is not direct because debar prices are still high there. But reduced scrap buying from China may force scrap prices down and this will impact on billet." Vietnamese importers are bidding at under $500/t cfr, SBB hears. Others point out that the region does not have sufficient billet for the approaching months.
Turkish scrap booking continues, prices are increasing
Turkish steel mills kept on booking scrap from international suppliers this week. They bought six deep sea cargoes from the EU and the US, and new offer prices are increasing, market sources tell Steel Business Briefing. Recent bookings include: one HMS 1&2 70:30 and shredded mixed cargo for $317-325/tonne cfr. Two HMS 1&2 70:30 and bonus scrap mixed cargoes sold for $316-326/t cfr. One HMS 1&2 80:20 and shredded mixed cargo was valued at $324-329/t cfr. One HMS 1&2 70:30 cargo went for $313/t cfr and another HMS 1&2 80:20 and shredded mixed cargo for $322-327/t cfr. New offer prices from US and EU suppliers have increased on last week. HMS 1&2 80:20 is currently being offered at $325-330/t cfr, up by $5-10/t. HMS 1&2 70:30 is being offered at $317-320/t cfr (up by $7-10/t) and shredded scrap at $330-332/t cfr with a $5-7/t increase. CIS region prices also increased on last week by $5-10/t and offers are at $320-325/t cfr currently.
The recent softening of China's steel markets has affected sentiment in Southeast Asia, industry sources tell Steel Business Briefing. While there is little scope for the Chinese to export billet because of the 25% export duty, the massive size of the country's steel market exerts a large influence on the direction of business being done in the wider region, traders say. In Southeast Asia limited offers are prevailing at $500-530/tonne cfr for billet from the CIS and $500-510/t cfr Philippines and $520/t cfr Vietnam for Taiwanese material. Malaysian-origin billet is being offered at $510-520/t fob. Concluded prices in the region were around $500/t cfr last week. "There are not many offers or much bidding from the re-rollers," an Indonesian buyer says. Rebar prices are flat in the country and seem likely to improve only around end-September after the Islamic fasting month, he says. "Sentiment is bad in the region because of fears of a price correction. The flats market is not doing well and domestic prices in China have been falling," a trader in the Philippines warns. Little billet buying is taking place because Vietnamese importers are waiting to see what will happen next to the Chinese market. "The impact of China is not direct because debar prices are still high there. But reduced scrap buying from China may force scrap prices down and this will impact on billet." Vietnamese importers are bidding at under $500/t cfr, SBB hears. Others point out that the region does not have sufficient billet for the approaching months.
Turkish scrap booking continues, prices are increasing
Turkish steel mills kept on booking scrap from international suppliers this week. They bought six deep sea cargoes from the EU and the US, and new offer prices are increasing, market sources tell Steel Business Briefing. Recent bookings include: one HMS 1&2 70:30 and shredded mixed cargo for $317-325/tonne cfr. Two HMS 1&2 70:30 and bonus scrap mixed cargoes sold for $316-326/t cfr. One HMS 1&2 80:20 and shredded mixed cargo was valued at $324-329/t cfr. One HMS 1&2 70:30 cargo went for $313/t cfr and another HMS 1&2 80:20 and shredded mixed cargo for $322-327/t cfr. New offer prices from US and EU suppliers have increased on last week. HMS 1&2 80:20 is currently being offered at $325-330/t cfr, up by $5-10/t. HMS 1&2 70:30 is being offered at $317-320/t cfr (up by $7-10/t) and shredded scrap at $330-332/t cfr with a $5-7/t increase. CIS region prices also increased on last week by $5-10/t and offers are at $320-325/t cfr currently.
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