The billet market remains firm in Asia on the back of strong Chinese buying, Kallanish notes. However, Southeast Asian importers are largely not keen to chase after higher-priced billet.

A 10,000-tonne cargo of Indian modified chemistry blast furnace billet was booked on Thursday at $406/tonne cfr Manila. It is a position cargo for end-July/early-August shipment. Offers for induction furnace billet from Vietnam and India are prevailing on Friday at $405/t cfr and for Black-Sea and Indian blast furnace billet at $415/t cfr.

Russian 130mm and 150mm billet is offered at $405/t cfr but this is for September shipment because the mill is fully sold out up to August. The same mill is able to supply 100mm square billet at $400/t cfr also for September shipment. Suppliers are probably holding out for higher prices, an importer says. “There are frankly not many real offers, indicative ones only. Everything seems to be going to China,” he adds.

Customers are still not in the market because they have enough stocks after almost three months of lockdown, a Manila trader says. It is challenging to find acceptance for offers priced at $400 and higher, he adds. On Friday, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $400-405/t cfr Manila, up $12.5 on-week.

Meanwhile, Iranian billet prices have also risen. Fixtures recently took place at $383-385/t cfr Thailand, a Bangkok trader reports. Some customers are still aiming to book at $380/t cfr, another Thai trader says. Offers are around $390-395/t cfr Indonesia. A trader reports that an Indonesian reroller ordered 10,000t of Indian-origin 180mm and 200mm billet at $405/t cfr during the week.  

In China, Indian traders report around 30,000t of Indian-origin 3sp grade billet booked Thursday at $400-403/mt CFR China. Earlier in the week, billet from India and Oman were booked at $395-397/t cfr China and those from Vietnam and Malaysia at $405/t cfr. The import duty for ASEAN-origin billet is 0% whereas for others it is 2%. An Indian mill’s export tender on Thursday for 30,000t of 150mm billet attracted the highest bid of $384/t fob India  (or around $400/t cfr China) from a Chinese trader. 

Some traders were concerned over the Chinese domestic billet market's weakness on Friday. "I think those who concluded billet at over $400 /t cfr billets will lose money," a Hong Kong trader says.