SE Asia: Imported billet market inactive amid holidays, prices fall w-o-w

South East Asia’s imported billet market remained silent this week due to the bid-offer disparities and low buying interest amid the public holiday in the region.

Offers from Indonesia’s Dexin were heard at around $565-570/tonne (t) FOB. However, bids are yet to improve, sources informed SteelMint.

“No bids today as the Philippines is on holiday until 10 April. Buyers are lowballing and some traders holding positions are making desperate sales. Overall the sentiment is quiet weak in SE Asia,” mentioned a source.

Weak finished steel demand in the region and declining rebar futures have weighed on billet import prices. According to SteelMint data, China’s SHFE rebar futures May contract stood at RMB 3,938/t on 6 April 2023, a sharp w-o-w fall of RMB 229/t ($33/t).

SteelMint’s bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines stands at around $573/t CFR Manila, a decrease of $22/t w-o-w.

Market highlights-

• Vietnam’s billet export offers down: Vietnam’s BF-grade billet export offers decreased following bearish moods in the global market and weak fundamentals in the finished steel market. Current offers stood at $530/t FOB. However, no active deals were reported at these offers.
  
  
• Thailand’s imported billet market weak: Imported billet prices into Thailand are hovering at around $585/t this week. However, no trade was reported at the above-mentioned prices.
  
  
• Indian billet export market at standstill: Workable prices of Indian billets for export stood at around $590/t FOB. Meanwhile, state-owned Vizag Steel has floated an ocean sale export tender for 20,000 t of steel billets (90x90mm, C20MMn Gr. A). The due date for bid submission is 12 April and the delivery is scheduled for 31 May.
  
  
• Iran’s billet export trade silent: Iran’s billets export market saw active offers this week in contrast to the subdued activity expected by some market participants after the Nowruz holidays. Around 90,000 t of steel billets were offered in the export market by Iranian steel mills to get a better price clarity. Apart from this, there has been no information about new offerings from mills. However, Khuzestan Steel Company’s (KSC) billet tender might get cancelled owing to the bid-offer disparities as the mill was aiming to sell at around $560/t FOB, and bids received were comparatively lower by around $15-20/t FOB, sources informed. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $560/t FOB on 4 April, a fall of $17/t, w-o-w.