Billet, wire rod prices rise in Manila
Billet and wire rod import prices have increased in the Philippines due to bullish suppliers, Kallanish understands.
Some 10,000t of billet was booked Wednesday/Thursday at $540/tonne cfr, Manila sources say. These are from the Middle East for February shipment. Indian billet is also offered during the week at $545/tonne cfr Manila.
Buyers were seen earlier in the week resisting these offers and bidding at $535/t cfr Manila. Local trading sources noted that the main reason behind the price uptick is the recent production disruption at Saudi Iron & Steel Company (Hadeed). The Hadeed cancellation "... has an effect" because it involved at least 70,000 tonnes priced from $503-523/t cfr, a Manila reroller says. These were mostly verbal agreements however and there are no signed contracts, Kallanish understands.
Regional sources are also observing pending export tenders by India’s Sail for two 13,500t cargoes of 5sp billet for February shipment. Some Indian trading sources heard that the highest bid received was $512/t fob. But the tender was not awarded as yet, traders said Thursday afternoon.
Kallanish assessed its weekly 5sp/ps or Q275 120/125/130mm square billet price last Friday at $535-540/t cfr Manila, up from the previous week's $525/t cfr.
Meanwhile, the wire rod import market is firm in Manila. A position cargo for Chinese 6.5mm diameter wire rod is heard at $625/t cfr. Vietnamese wire rod offers are prevailing at $615/t cfr. Russian wire rod is offered at $600/t cfr Manila. Some traders say that they have heard market acceptance for Asian material at $610/t cfr.
Some are noting that the price gap between wire rod and billet of around $70/t is too wide. “Demand for wire rod will fall if wire rod prices don’t come down,” a trader says. At least half of wire rod is used to produce smaller sized debar products so wire rod imports would not be able to compete with billet at such a huge premium, he explains. "Or else, the price of billet could catch up with wire rod," he notes.
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Anonymous
Very good overview of the weekly steel market.
Anonymous