SE Asia: Imported billets market remains bearish amid bid-offer disparities

South East Asia’s imported billets market remained silent on low buying interest amid subdued finished steel demand, bid-offer disparities and the region struggling with natural calamities, SteelMint observed.

Meanwhile, the market has also slowed down as China will remain inactive next week owing to the National Holidays.

SteelMint’s bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $565/tonne (t) CFR Manila, a rise of around $30/t, w-o-w. However, no active trade has been reported at current offers as buyers have adopted a wait-and-watch mode amid price-cut expectations.

Market highlights

• Vietnam’s billet export offers drop w-o-w: Vietnam’s BF-grade billet export offers stood at around $535/t FOB, a decrease of around $10/t FOB, w-o-w. Falling scrap prices and modest demand for finished steel in the region have weighed on billet export offers, SteelMint observed.
• Iranian billet export market silent: Iran’s billets export market remained largely inactive this week, with no active deals for exports recorded by SteelMint so far. Low bids from the key importing nations, limited trades and competitive offers from Russia weighed on the export market, SteelMint notes. Moreover, economic activity in Iran is getting hampered due to the pending political negotiations involving the Joint Comprehensive Plan of Action (JCPOA), sources informed. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $460/t FOB on 30 September, stable w-o-w.