The billet and wire rod markets in Southeast Asia are firming, Kallanish notes, with ASEAN mills' production now reported going to Europe.

"This [Europe-bound exports] will have the same effect as when China is buying. Prices are moving up," a Manila trader says.

5sp grade blast furnace billet for November shipment is currently offered at $560/tonne cfr Manila, up $10-20/t from last week. A trader’s position cargo for 5sp billet from the same Indonesian mill sold at $550/t cfr Manila on 7 September. The cargo is due for shipment by 10 November.

Philippine buyers have been shunning imports previously and offers were stagnant at $540-550/t cfr for several weeks. They delayed buying because of depressed rebar demand and volatility in China's steel market. The Indonesian mill was widely heard to have sold 100,000 tonnes of billet late last week at under $520/t fob to the EU and Africa.

The Indonesian mill, together with a Malaysian mill, have also been actively exporting wire rod to the EU. Their export business has helped jump-start offers in a stagnant ASEAN wire rod market. Offers for 6.5mm SAE 1008 blast furnace regional wire rod for November shipment have risen to $595-605/t cfr. This is higher than the level of $585-595/t cfr seen in the last three weeks of August. 

Kallanish assessed SAE 1008 6.5mm diameter wire rod on Thursday at $590/t cfr Manila, up $5 on week.

A Philippine trader is unaware of any deals in Manila this week. But he hears the highest booking level achieved for regional SAE 1008 wire rod was $670/t cfr Europe. The Malaysian mill is heard to have sold SAE1006 grade wire rod directly at close to $700/t cfr Spain, a source in North Africa reports. Singapore-based traders estimate that freight from ASEAN to Europe is around $80-90/t.

A Vietnamese mill is asking for bids at $620/t fob Vietnam instead of offering to the market, a trader says.

In Thailand, the Malaysian mill's wire rod is offered at $590/t cif Thailand, unchanged from the past two weeks, Thai trading sources say. However, bids are lower, at $570/t cif Thailand. Freight is $20-25/t depending on tonnage.