SE Asia: Billet import offers continue to surge despite a trade silence

The trade silence continues to exist in the SE Asian billet import market on rising prices leading to a wide bid-offer spread. According to our sources, the offers reported hovering at $620/t CFR levels. However, the buyers posed limited interest in making any purchase and have seen bidding at $600-605/t, CFR levels. Currently, they are in a wait and watch mode, anticipating a fall in prices. During conversations with market participants, SteelMint learned that SE Asian buyers have enough appetite until Jan ’21.

Deals & offers-

CIS- The offers have risen sharply post new-year holidays and are currently at $590-595/t, FoB Black Sea. Our Vietnam based source mentioned – ” Russia is offering billets at $615 CFR levels for the Philippines.”

India- The primary mills broadly remained silent and no offers were noted from these mills. However, a 30,000 t bloom export tender from an Indian state-owned mill is floating. On the other hand, Indian secondary mills have offered at $600-610/t, FoB for Indonesia. SteelMint’s bi-weekly assessment for Indian billet (150*150mm, FoB east coast, BF route) is $565-570/t, up by $5 against last week.

Iran- Iranian billet export offers surged further to reach $570-575/t, FoB levels. A few leading mills are likely to float the billet export tender by next week. SteelMint’s bi-weekly assessment for Iranian billet is $565-570/t, FoB, up by $15-20 against last week.

Vietnam- The BF billet export offers from the country surged by $30 this week after the country booked sizeable volumes for Taiwan at $585/t, CFR, earlier this week. However, SteelMint could not confirm the quantity until the publishing time of this report. Currently, the BF route billets from Vietnam reported having offered at $600/t, FoB. While IF route billets heard offered at $600-605/t, CFR Philippines.

Thailand- Billet import offers are hovering at $600/t, CFR from Vietnamese and Indonesian mills.

Apart from the above offerings, we also heard Japanese and Malaysian BF route billets offered at $620-630/t, CFR levels for the Philippines.

This week, SteelMint’s assessment for billet import in SE Asia is $600-605/t CFR, up by $10-15 against last week.