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

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

Offers are prevailing at around $625-630/t CFR Manila. Some ASEAN-origin offers were also heard at a higher level of $660/t CFR. However, bids are yet to improve as buyers are willing to buy at around $620/t CFR Manila.

SteelMint’s bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $624/t CFR Manila, a significant increase of around $24/t w-o-w.

Market highlights

• Vietnam’s billets export offers unchanged w-o-w: Vietnam’s BF-grade billets export offers remained stable at $630/t FOB this week. Prolonged inflation and high-interest rates put pressure on the real estate industry. Demand for finished products for the construction industry is slow which has weighed on billets prices.
• Thailand’s imported billets prices stable: Imported billets prices in the country remained stable for the second consecutive week at around $620-640/t CFR.
• Indian mills continue to eye higher billets prices: Indian mills’ expectations for recent billets export tenders are at around $580-585/t FOB. Meanwhile, State-owned Vizag Steel had floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery against 100% advance payment terms. The due date of the tender was 22 February, 2023. According to sources, the steel mill managed to receive bids at around $575-580/t FOB.
• Iranian billets export market less active: Iran’s steel billets export market witnessed limited trading this week amid news of the Iranian government introducing new policies due to expected inflation in the country and the increasing trend of the exchange rate. As a result, an upward swing in the exchange rate led the domestic market to become the “first preference” for billets exporters to sell their material, sources informed. Less number of firm offers currently in the export market and power curbs due to harsh winter in the region also weighed on trade activities. However, an Iranian steel mill has concluded an export deal for 30,000 t of billets at around $554/t FOB for March 2023 shipment. Prices have corrected downwards by $6/t against the last deal. SteelMint’s latest assessment of Iran’s billets (3SP) export prices stood at around $558/t FOB on 24 February, unchanged w-o-w.