Posted on 18 Nov 2019
The Manila billet market has risen on higher-priced deals in the region amid hiked offers from suppliers, Kallanish understands. However, buyers in the Philippines are slow to close deals because sellers are seeking large price increases.
Billet import offers have gone up sharply. Certain Russian suppliers are indicating $430/tonne cfr for fresh offers. “No one will take such sudden spikes,” a Manila trader said last Friday. This is a $25/t increase from the last-heard Russian booking at $405/t cfr Manila the previous week. He believes it is now possible for buyers to accept $410-415/t cfr.
Offers had jumped to $425-430/t cfr on Thursday, from $415-416/t cfr Wednesday, says another trader who has not heard of recent deals. “Suppliers are trying to stampede the market into buying,” he says. He personally believes that “…underlying demand is still weak all over the world."
Elsewhere, Russian 150mm billet for January shipment was booked at $410/t cfr Taiwan, Taiwanese trading sources say. A regional trader for a Russian mill says that $410/t cfr is “…a workable price.” “Prices are going up. But I don’t think that it is possible to be higher than $420/t cfr,” he adds.
Traders reported hearing 40,000t of Vietnamese blast furnace billet for end-November/early-December shipment booked at $395/t fob for the China market earlier in the week. With freight at around $15/t, this would be equivalent to $410/t cfr, Vietnamese trading sources estimate.
However, there are unconfirmed reports that the Vietnamese cargoes were sold higher at $418/t cfr China because the shipment is prompt. Kallanish understands that ASEAN imports into China also enjoy a 2% import duty advantage.
On Friday, Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $410/t cfr Manila, $6 higher on-week.
