The ASEAN billet market has slumped again in tandem with declining steel futures in China, Kallanish notes.

Offers have fallen in Manila to $440-445/t cfr for July-shipment 5sp 150mm billet of open origin, either Chinese or ASEAN. This is $5-10 lower on-week.

Prices for 5sp 130mm have also dropped. A regional trader hears 5sp 130mm Chinese billet offered at $445/t cfr. “Futures have been in a downtrend all week,” he says. Trading is “too uncertain” amid unsettled US trade tariffs, he notes on the quiet market. Certain offers last Thursday were at $440/t cfr for 40,000t 5sp 150mm billet cargoes, another says.

A local reroller thinks that some traders may have started shorting the billet as early as the previous week (through 23 May) when market prices were at $440-450/t cfr for 5sp 150mm billet. This was when there was an apparent weakening in iron ore and coking coal while long products demand was softening, he notes. "It is highly possible that some deals have been concluded but I would imagine not much," he says.

A local trader reports hearing that 5,000t of 5sp 130 mm square billet was recently ordered at below $450/t cfr Manila.

Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $445/t cfr Manila, $2.5/t lower on week.

In Indonesia, offers for Chinese 5sp 150mm billet are prevailing at around $445/t cfr Jakarta, importing sources say. The offers are at $445-450/t cfr Indonesia, a Jakarta trader says. But he thinks that offering billet is less meaningful because "demand is very weak." Indonesian demand has been depressed because of cutbacks in government infrastructure spending. Public holidays including the recent Ascension Thursday and the approaching Eid al-Adha have caused demand to worsen further, he adds. 

Leading Indonesian producer, Dexin Steel is offering 3sp 150mm billet for September shipment at $428/t fob.