Bearishness continues in the Southeast Asian billet import market, Kallanish notes. Suppliers are continuously cutting billet offer prices to entice buying, but buyers remain waiting on the sidelines.

In Manila, Japanese electric arc furnace billet offers were heard coming down during last week from $780/tonne cfr to $760-770/t cfr at the end of the week. Regional induction furnace billet offers are tagged at $745-755/t cfr, around $20-30/t lower week-on-week.

An Indonesian mill was offering 150mm 3sp grade billet at $775/t cfr Manila. “But this is few days ago. Today, I'm sure it'll be way lower,” a regional trader said on Friday. Buyers then were indicating bids at $740/t cfr, but he did not hear of deals taking place. “Sentiment has turned sharply negative,” he added.

A Manila trader also reports he has not heard of recent billet deals. Russian 125mm 5sp billet offers are prevailing at $725-730/t cfr Manila. “There are many such offers available,” he says. He pinpoints these offers to two regular Russian billet exporting mills. Payment for Russian billet remains an issue with Philippine banks. The asking price for Russian billet was heard at $760-765/t cfr Manila during the week ending 22 April.

Those re-rollers which require billet would have already made their purchases. "Russian shipments booked prior to the invasion that were uncertain are on the way or have arrived," a Philippine importer says. He adds that the rainy season was approaching. "Construction activity is lacklustre and infrastructure [projects are] on hold due to the [general] elections,” he observes. Kallanish lowered its assessment for 5sp/ps or Q275 120/125/130mm square billet to $755-760/t cfr Manila, down $37.5 on week.

Russian 125mm billet that is ready at loading port has been offered for the last 45 days, a Thai trader says. “They are still there and they keep offering at lower and lower prices,” he says. He hears offers at $740/t cif Thailand. Russian billet quotes are also heard at $650-670/t cfr China. But these levels are too high since domestic prices are up to $40/t lower, Chinese traders say.

Meanwhile, suppliers are quoting lower offers for Iranian billet cargoes diverted from China. Offers are at as low as $720/t cif Thailand, but some hear market chatter of offers at $705-715/t cif. New-production Iranian billet offers are at around $740/t cif based on a tendered price of $670/t fob Iran.