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.