Traders are believed to be pushing down the billet import market in Southeast Asia, Kallanish notes. This is causing market instability and there are no signs yet of any price support.

There are several offers for Indonesian blast furnace 5sp grade 130mm/150mm billet for May shipment at $560/tonne cfr Manila, down from $580/t cfr last week. Most of the current offers in the market are from traders unwinding their previous positions, as well as from short-sellers, one regional trader says.

Last Friday, a 5,000-tonne cargo of 130mm 5sp Vietnamese induction-furnace billet for May shipment was offered at $560/t cfr Manila. “This is very low,” a Vietnamese mill manager says. It could be a position cargo because, at current scrap prices, the mill would be making a loss, he explains. Local induction furnace billet offers in Vietnam are prevailing at the equivalent of $570/t – but negotiable – delivered to local re-rollers, he adds. Freight is estimated at around $20/t from Vietnam to Manila.

“This is definitely a position cargo. Traders are trying to cut losses,” a Manila trader observes. The low-priced offers are “spooking customers and show the low confidence level of traders.” Another trader adds: “The market seems to be going down and there is no sign of stopping yet,” another says. A Manila re-roller describes the latest offers as "really terrible bloodletting”.

Offers for 3sp grade 150mm billet from the above-mentioned Indonesian mill are prevailing at $565/t cfr Taiwan for May/June shipment. This is $5/t lower than last Thursday. Buying interest is sparse but a Kaohsiung trader is trying to close deals despite the weak market.