The Southeast Asian import market for billet was sluggish last week, Kallanish notes. Regional importers are on the sidelines because finished steel prices are unable to keep up with the sharp price increases in billet, trading sources say.

In Manila, regional blast furnace 150mm square billet including from Malaysia and Indonesia is offered at $820-825/tonne cfr and EAF 120/130mm billet at $820-830/t cfr. A buyer notes there are fewer buyers in the Philippines for 150mm billet than there are for the smaller sizes. He has heard EAF billet offers even at $830-840/t cfr.

Some buyers told a regional trader of induction furnace billet bookings in the past week at $780-785/t cfr Manila from Vietnam. He was unable to determine the current market level and blames the quiet market on a lack of liquidity. The Vietnamese billet bookings took place at that level, a Vietnamese trader agrees.

But other traders and buyers tell Kallanish that induction furnace billet offers are limited. They heard offers at $810-815/t cfr Manila. Transactions for Thai induction billet closed at under $800/t cfr during the week beginning 28 March. 

Liquidity has been adversely affected because billet prices have risen by some 30% since last month, a Manila trader says. Buying interest is also lacklustre due to the approaching long Easter holiday, he adds. While many market participants will not be going on their typical holidays due to Covid-19 concerns, “everything else will be mostly closed including banks and construction sites”.

A regional trader says the market weakness is more widespread. “There is hardly any buying interest across the region. Billet prices rose too sharply for the finished steel market to follow."

Kallanish maintained 5sp/ps or Q275 120/125/130mm square billet on Friday at $810-820/t cfr Manila.