The billet import market is quiet in Manila after suppliers hiked regional offers during the last week amid strong buying in China, Kallanish notes. Many importers appear to be resisting these offers.

Market participants attribute the increased regional prices to China’s purchasing of billet. An importer in Manila says billet imports, including Russian material, were "…scooped up by China," meaning no transactions have taken place recently in the Philippines. “China is paying top dollar for steel today, until the next round of price backwardation, whenever that will be,” a Manila buyer says.

Offer prices have risen in the Philippines to $410-420/tonne cfr Manila, up by $10-15/t on-week. Trading sources say these are for EAF and induction furnace billet from Asia, including India, Malaysia and Vietnam.

“Many customers said they don’t want to chase the market [for billet],” a Manila trader says. While some Philippine re-rollers could accept this higher-priced billet, many mills have billet feedstock left over from the lockdown and are operating at lower plant utilisation rates, a mill manager says. He suspects some mills were also able to replenish their inventories when prices fell to $395-398/t cfr Philippines.

On Friday, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $400-405/t cfr Manila, up $2.5 on-week.

In China, meanwhile, billet import prices have inched up to $415/t cfr. Deals for billet from India recently concluded at this level, Chinese traders say. These include the resale of position cargoes for August shipment. Induction billet from Vietnam for September shipment also transacted at $415/t cfr China, up $5/t since earlier in the week. A cargo for Middle Eastern billet closed at $413/t cfr China at the end of the 10 July week.