According to market sources, the leading steel producer in the Philippines - SteelAsia - has bought about 42,000 mt of ex-Qatar 150 mm billet at $446/mt CFR for February shipment. Such a higher price level was accepted in the deal because the freight rate to the customer’s rebar plant in Davao is much higher than to Manila, SteelOrbis has learned. Nevertheless, the tradable level for import billet in the Philippines has reached $440/mt CFR Manila following this contract, which is $5/mt higher compared to the previous transaction price.
However, it has been reported that small re-rollers in the Philippines are still not ready to accept higher prices and have withdrawn their bids. “I had bids at $435/mt CFR early this week, but now bids other than SteelAsia’s are certainly waning,” an Asian trader said.