SE Asia: Imported billet market sluggish amid bid-offer disparity

South East Asia’s imported billet market has remained less active than usual this week due to the gap between bids and offers. The weakening of buying sentiments amid a subdued finished steel market in the region held back trade.

SteelMint's bi-weekly assessment of BF-route billet (150x150mm, 3SP) imported by the Philippines currently stands at around $517/tonne (t) CFR Manila, a significant fall of around $41/t, w-o-w.

Meanwhile, offers for IF-route billet were heard at around $520/t CFR Manila. However, bids are yet to see significant improvement.

Market highlights

• Vietnam’s billet export offers fall w-o-w: Vietnam’s BF-grade billet export offers stood at around $500/t FOB, a w-o-w fall of around $20/t due to weak demand in the domestic market.
  
  
• Thailand’s imported billet prices edge down: Indicative imported billet prices into the country are hovering at around $530-540/t CFR, a decrease of around $25/t w-o-w. Weak demand and falling finished longs prices in the region due to the onset of the monsoon continue to weigh on billet import prices.
  
  
• Indian billet export market stagnant: The Indian blast furnace (BF)-grade billet export market almost shifted towards the domestic segment. Increased realizations in the domestic market compared to exports led sellers to divert sales. As result, in the last couple of days, sellers stayed away and offers remained stable. India steel mills are facing difficulties in exporting owing to the large gap between offers and bids following the current global meltdown. Exporters are not ready to sell at lower bids and prefer the domestic market which is fetching higher realisations, sources informed.
  
  
• Iranian billet export prices fall further post-Eid holidays: Iranian billet export prices witnessed a significant drop in recently-concluded deals. Declining global scrap prices, low bids from key importing nations, limited trade and cheaper billet offers from Russia continued to drag down billet export prices, SteelMint notes. An Iranian mill concluded an export deal for 30,000 t of steel billets towards the end of last week. The deal was heard concluded at around $510/t FOB and the shipment is scheduled for mid-August. Another export tender for 30,000 t of steel billets was concluded recently at around $461/t FOB. Iran's billet export prices have fallen by around $60/t as against the last concluded tenders the previous week. The price difference between the two deals was due to different destinations for GCC and SE Asia. Meanwhile, Khouzestan Steel Company (KSC) has floated 40,000 t each of steel billet and slab export tenders. The shipments are likely to be scheduled for September.