The Southeast Asian billet import market continues to firm, Kallanish notes. Certain Southeast Asian mills acceded to paying higher prices to secure billet imports.
During the week, market participants heard a 20,000-tonne parcel of Indonesian blast furnace bar-quality billet booked at $450-452/tonne cfr Malaysia. The same mill is also selling billet to Jakarta at $452/t cfr, an Indonesian reroller reported.
High scrap costs are forcing the regional EAF mills including those in Malaysia to turn to billet imports instead of producing billet, a regional trader says. The mills’ production cost for billet is at a minimum of $450/t using domestic scrap tagged at an estimated $300/t. It would cost more if domestic scrap supply is limited and the mills need to buy higher-priced scrap imports. "These mills are facing a squeeze. But the (foreign) exchange rate has become more favourable for regional importers," he says.
In Manila, a 30,000t cargo of 130mm 5sp modified billet from Russia was ordered during the week at $455/t cfr Manila. The cargo is due for December shipment. EAF billet from South Korea is currently offered at $456/t cfr. Vietnamese induction furnace billet is offered at $450/t cfr against a bid of $445/t cfr. Japanese EAF billet and Russian 100mm square billet were ordered during the 11 September week at $450/t cfr.
On Friday, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $450-455/t cfr Manila, up $5 on-week.
Meanwhile, Iranian billets for October/November shipment were booked at $435-440/t cif Ko Sichang in the first half of September. Iranian billet is also heard ordered at $435/t cfr Indonesia during the first week of September.
Source : Kallanish
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