Imported billet prices are continuing to fall in Southeast Asia, Kallanish understands.  Amid bearish market sentiment which has persisted for weeks, regional buyers are hesitant to make bookings.

Indian and Russian billet prices are on Friday lower than earlier in the week in Manila. Blast furnace billet from Indian is offered as low as $410/tonne cfr, down from $420/t cfr earlier in the week, Manila trading sources report. Russian 125mm billet offers are now lower at $415-418/t cfr compared to $419/t cfr Manila in the middle of the week.

Russian billet was previously transacted at $425/t cfr Manila on 2 September. Some local traders also reported induction furnace billet from India booked at $410/t cfr more than a week ago. Indian billet is generally less popular in the Philippines and buyers could expect to purchase less than from other origins, Kallanish hears.

On Friday, Kallanish lowered its weekly 5sp/ps or Q275 120/125/130mm square billet assessment to $413-415/t cfr Manila, down $10/t on-week.

Meanwhile, Vietnamese producer, Formosa Ha Tinh, cut domestic 130mm square 5sp billet prices during the week of 9 September. Its domestic prices for October shipments are $420/t cif North Vietnam and $425/t cfr South Vietnam, down $35/t from last month's $455/t and $460/t respectively. 

Formosa's billet price cuts were announced ahead of monthly domestic hot rolled coil prices (see separate article) because the mill is facing low billet sales. Buyers have stayed away in the past month because billet prices have fallen sharply, a regional trader says. Import prices in the Philippines, as assessed by Kallanish, have fallen by $30-32/t since mid-August.

On Friday, Formosa also lowered its wire rod prices by $14/t. Its GCWQ wire rod for October/early-November shipments is now $526/t cif for MQ grade, and $516/t cif for MQ2 grade. Formosa sells on a cif basis because its plant is in a special economic zone.