Billet exporters continue to strongly propel the market upwards in East Asia, Kallanish notes. New offer prices are rising ahead of the current market level, regional market sources say.

A Malaysian mill’s offer for 130mm and 150mm 3sp billet, for March shipment, is tagged at $620/tonne cfr Manila and for 5sp billet at $628/t cfr. The market’s “momentum to [reach] $580/t cfr certainly slowed down,” a regional trader observed. But offers are far higher, he adds. Offers last week were prevailing at $585-600/t cfr Manila. On the other hand, he has not heard of bids rising from last Friday’s level of $570/t cfr and possibly $575/t cfr.

A 50,000-tonne cargo of Russian 150mm 3sp/4sp billet was heard to have transacted around Monday at $588/t cfr Taiwan, regional trading sources report. The March-shipment consignment is heard to have been sold to a large re-roller in Kaohsiung. “Generally, [Taiwanese] buyers’ idea is $570/t cfr,” a Kaohsiung trader says.

Demand for construction steel is still sluggish, he adds. He hears the Taiwanese buyer “can overcome payment” for Russian steel by issuing a letter of credit through Dubai. He deems the concluded price for Russian steel to be high but adds: “Maybe it is hard to buy from other sources at a lower price."

An Indonesian blast furnace mill has announced this week that its latest 3sp grade billet offer is at $620/t fob for end-March shipment, up from $590/t fob last Friday. The mill’s offer today is at around $645/t cfr Jakarta, compared to $615/t cfr last Friday, Indonesian market sources say. The mill’s price increase is based on speculation, an Indonesian mill manager opined on Wednesday.

Traders have been pushing up regional prices in recent weeks. A Chinese trader is heard to have ordered 50,000t of Indonesian blast furnace 3sp billet at $565/t fob last week. Trading sources say the Philippines is the top destination for these billet bookings.