Prices for Asia billet imported to Southeast have been heavily inflated amid bullish Chinese steel markets this week, market participants told Fastmarkets on Tuesday November 10.
Increasingly strong Chinese steel prices over the last week have led to a surge in steel billet offer prices to the Manila market, despite muted buying interest amid high stock levels in the Philippines. Buyers in Thailand and Indonesia remained out of the market.
Offer prices – which were at $455-460 per tonne cfr Manila for 5sp billet most of last week – have risen to above $470 per tonne cfr in recent days.
*** Asia billet , Vietnamese induction furnace (IF) billet
Vietnamese induction furnace (IF) billet was offered at $472 per tonne cfr Manila, while Indonesian blast furnace (BF) billet was available at $475 per tonne cfr on Tuesday.
Bids from buyers in Manila have remained largely rangebound, however, with inquiries for Japanese 3sp billet heard at $450 per tonne cfr in recent days and at around $455 per tonne cfr for various origins of 5sp BF billet.
Fastmarkets’ daily price assessment for steel billet, import, cfr Southeast Asia, which mainly looks at 120-150mm 5sp grade billet sold into the Philippines was $455-465 per tonne cfr on Tuesday, widening up $5 per tonne day on day and widening up $10 per tonne from $455 per tonne cfr week on week.
China was heard to have purchased Indonesian BF billet at $465 per tonne cfr late last week, while there were rumors of another deal at $470 per tonne cfr, Fastmarkets heard. Offers to China were reported as high as $490 per tonne cfr from India and $482 per tonne cfr from Vietnam on Tuesday.
*** Manila market in waiting mode
Some market participants told Fastmarkets they thought Manila billet prices would continue to rise and if mills in the Philippines are unwilling to match Chinese prices then they would be unable to attract much material.
“Honestly I think that Manila [market participants] are price takers at this point – all eyes are on China at the moment. Sooner or later Manila will have to re-stock and the recent typhoons had minimal impact,” a Singaporean trader said.
Although offer prices of $472 per tonne cfr Manila from Vietnam are currently “wishful” on the part of sellers, there is a real lack of any alternative offers in the market currently, the Singapore-based trader added.
“All material is going to China – I think Manila will struggle to get billet at $455 per tonne cfr now that China is back,” a Vietnamese trader said.
Other sources said that it was unlikely that consumers in Manila would need to re-enter the market anytime soon.
“Offers are highly inflated because of China but actual demand in Southeast Asia is still slow,” a South Asian trader said. “I would estimate that in the Philippines, demand is about 60-70% compared with normal times.”
“For the last few weeks of the year, there’s maybe only one mill that wants to buy material in the Philippines,” a Philippine trader said.
*** Asia billet , Japanese 3sp billet
One Japanese trader said that prices of $455-460 per tonne cfr Manila could be workable for Japanese 3sp billet on Tuesday, but this may not be the case for much longer.
“Japanese mills want to wait and see because the domestic scrap price is going up and the Kanto Tetsugen scrap auction will take place tomorrow. After that, they will restart negotiations,” the Japanese trader said.
Japanese sources told Fastmarkets they expect a rise in the Kanto Tetsugen price, perhaps by as much as ¥۲,۰۰۰ ($۱۹) per tonne month on month.
Two Vietnamese traders bought H2 scrap at an average of ¥۲۸,۴۰۶ per tonne fas in October’s Kanto Tetsugen auction, Fastmarkets heard.
این مطلب بدون برچسب می باشد.
ثبت دیدگاه