SE Asia: Bearish sentiments intensify in imported billets market, prices fall w-o-w

South East Asia’s imported billets market continued to remain silent this week due to the bid-offer disparities and muted demand in the finished steel sector. Also, market participants adopted a wait-and-watch approach amid further price cut expectations, which further limited trade activities.

Offers from Indonesia’s Dexin were heard at around $540/tonne (t) FOB. However, bids are yet to improve.

Low buying interest, falling global scrap prices, and volatility in rebar futures have weighed on billet import prices. According to SteelMint data, China's SHFE rebar futures for October 2023 contract stood at RMB 3,660/t on 28 April 2023, a w-o-w fall of RMB 150/t ($22/t).

Meanwhile, Turkiye’s imported scrap prices have witnessed a fall of around $16/t, w-o-w amid the Eid holidays. Also, the domestic market remained subdued with slow off-take, according to sources.

SteelMint's bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $530-535/t CFR Manila, a fall of around $27/t, w-o-w.

Market highlights

• Vietnam’s billet export offers inch down w-o-w: Vietnam’s BF-grade billet export offers inched down by around $10/t w-o-w to $530/t FOB. No active deals were reported on these offers.
  
  
• Thailand’s imported billet prices unchanged: Imported billet prices into Thailand were hovering at around $565/t CFR, stable w-o-w.
  
  
• Iran’s billet export market awaits tender outcome: Iran's steel billet export market remained silent this week, awaiting tender outcomes for better price clarity. Low demand from key importing countries and a fall in bids weighed on the billet export market. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $500/t FOB on 28 April, down by around $20/t, w-o-w.