China's billet import market has softened, Kallanish notes. After weeks of strong buying and continuous price hikes, Chinese buyers are paying less for imports.

Vietnamese blast furnace 150mm 3sp billet was booked earlier this week at $422/tonne cfr China, down from $428/t cfr last week. A large Vietnamese exporter sold the cargo for end-October shipment. Another Vietnamese blast furnace mill also closed a deal at $422/t cfr China on Wednesday, some Chinese trading sources report.

Offers for Indian blast furnace billet are at $425/t cfr China and for induction furnace billet at $413-414/t cfr China, Chinese trading sources say. Chinese bids are currently at $410/t cfr for induction furnace billet and at $415/t cfr for blast furnace billet from India, a Chinese trader observes. Chinese buyers would be wiling pay for Vietnamese billet at around $420/t cfr, another says. ASEAN billet imports are priced higher because they are exempt from a 2% import duty.

Meanwhile, the import market for billet in Southeast Asia is quiet. A Manila trader says he has not received new firm offers, while another has heard induction furnace billet from Thailand and Vietnam offered at $420/t cfr Manila. Russian billet is offered at $430/t cfr Manila, an importer says.

A leading re-roller in the Philippines ordered a large tonnage of Indian 150mm 5sp billet at $428/t cfr Davao a week ago. The deal surprised some trading sources because regional importers' target prices are generally trailing behind offers. This is because regional rebar markets have yet to pick up post Covid-19.

The price level was “…reasonable” for a back-to-back order, a Singapore trader says. Some traders report freight from India to Davao costs $7-10/t higher than to Manila. Another Singapore trader believes the billet sold was of high manganese content. 

On Thursday, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $420/t cfr Manila, up $10 on-week.

In Thailand, local re-rollers cannot hike rebar prices amid weak demand, a Thai trader says. With domestic rebar prices prevailing at THB 14,500/t ($462), the mills stand to lose THB 1,000/t if they booked billet priced at $420/t cfr. Indian induction furnace billet is currently indicated at $420/t cif, he adds.