A deluge of resale 3sp, 150mm steel billet import cargoes, largely held by Chinese traders, has been sold into Southeast Asian markets such as Indonesia, Taiwan and Thailand in the last month, disturbing the market for 5sp new production billets across the region
Such purchasing has not taken place to the same extent in the Philippines, however, where most buyers are unable to consume 150mm-spec billets and many prefer the higher grade 5sp over 3sp materials.
With availability of their preferred 5sp 120-130mm billets much lower in the international markets, offer prices of these materials have been stronger than 3sp cargoes in November.
But market sources said that there was a noticeable drop in prices on Russia-origin 5sp billets to the Philippines this week, which followed a key change in the country’s export tax policy. The costly 15% steel export tax will be replaced with a smaller 2.7% excise tax...