The market for long steel products is weak in the Philippines due to the current rainy season and bearishness among buyers, Kallanish is told. Importers are either giving low-priced bids or else, staying on the sidelines.

Demand for billet and wire rod imports is very weak, Manila-based trading sources said. “Sentiment is 100% down. Customers are mostly convinced that prices will continue to fall,” a trader said. “So they stop buying and it becomes self-fulfilling,” he said.

Domestic rebar prices at the end of last week were at break-even levels for billet if imported at $500/t cfr Manila. “Even at $500/t cfr, it doesn’t work,” another Manila trader said. “If the downtrend continues, rerollers will face losses,” he said. He said that Philippine rerollers wanted to book material at under $500/t cfr Manila but he was unsure how much exactly because he had not heard firm bids. Billet imports were recently offered at $500-510/t cfr Manila.

While Chinese mills are currently aiming to export SAE 1008 6.5mm diameter wire rod at $560/t fob China, offers in Manila have slipped. Chinese offers from traders have fallen to $560-565/t cfr Manila this week, down $10/t week-on-week.  “Maybe traders are short selling again,” a Manila trader said. While certain Chinese wire rod offers have fallen to $555/t cfr Manila, there are no takers so far, another said on Thursday.

A low-priced booking for Indian-origin wire rod heard Wednesday at $545/t cfr Manila did not surprise traders. “Nobody would pay a higher price. Plus there’s a 1% import  duty for Indian origin wire rod,” the first trader said. “Prices are on a downtrend,” the second trader said. “There is no reason for anybody to buy today,” he added.