In a softening market, ASEAN buyers are actively trying to lower billet import prices. The Philippines market has seen competitive offers for Japanese EAF billets in addition to the usual supplies from China and ASEAN countries.
Japanese-origin 5sp 130mm billets for February shipment are being offered at $462/tonne CFR Manila. Traders have lowered their initial offers of $475/tonne CFR to invite bids at $460/tonne CFR, with multiple offers in lot sizes of 6,000 and 10,000 tonnes.
Buyer-Seller Stalemate Amid Holiday Sentiment
A Manila reroller described the current market situation as a “stalemate” between buyers and sellers. Most buyers in the Philippines are holding firm, aiming to book below $460/tonne CFR.
The holiday atmosphere has further dampened purchasing interest, with buyers showing little enthusiasm despite lower prices. For many companies, last Friday marked the final working day before the Christmas and New Year holidays. A trader remarked, “Business has not improved, and the outlook remains bleak. The recent uptick in China after the announcement of new stimulus measures has already lost momentum. Southeast Asia is facing a surplus of both old and new steelmaking capacities.”
Chinese Billet Prices Decline
Chinese billet prices have fallen in tandem with weaker steel futures and spot markets. Offers for 3sp 150mm billets are now at $435-440/tonne FOB, down from $455/tonne FOB on December 13. Buying inquiries from Indonesia and the Philippines are reported at around $450/tonne CFR for 3sp billets and $455/tonne CFR for 5sp billets.
Market assessments have revised the price of 5sp/ps or Q275 120/125/130mm square billets to $460/tonne CFR Manila, a $5/tonne decrease week-on-week.
Updates from the Indonesian Market
In Indonesia, offers for Japanese 5sp billets were at $475/tonne CFR last Wednesday. Chinese 3sp billets were priced at $465/tonne CFR Jakarta, while 5sp billets were at $470/tonne CFR.
A leading Indonesian steel mill has adjusted its 3sp 150mm billet prices for February shipment to $440/tonne FOB as of December 20, down $5/tonne from the previous day. Similarly, its slab export prices have been reduced by $5/tonne to $440/tonne FOB.
