Asian rebar and billet prices in the spot market remained unchanged Sept. 20 as regional countries experience difficulties in curbing COVID-19 spread while Chinese players are away for the Mid-Autumn Festival Sept. 20-21.

          S&P Global Platts assessed the CFR Southeast Asia rebar at $715/mt, unchanged from Sept. 17, as offers to Singapore from Turkey remained heard indicatively at $720/mt for November shipment, the same as the previous assessment.

          COVID-19 cases in Singapore started to surge since mid-August and surpassed the level of 1,000 daily new infections from Sept. 18 onwards. The worsening situation had interfered with local construction activities. “Construction projects have either stopped or slowed down here. At some sites, they can’t even find enough workers,” said a Singapore-based source, adding that stockiest were seeing full inventories through November.

          As a result, demand dried up as buyers were hesitant to restock amid uncertainties ahead. A trader said that buying indications from Singapore were hovering at no more than $710/mt CFR for open origins, though such levels were “tough” for sellers to consider given rising freight cost.

          Meanwhile, few market indicators were observed from China, as the Chinese futures market was closed due to public holiday.

          Within the billet market, a handful of offers heard though no deals were concluded.

          “The market has been moving slowly in the Philippines. The billet prices have risen by $20-$30/mt since Chinese buyers started to buy two weeks ago. So it’s hard for buyers to match the biding prices,” a Philippine-based source said. “On top of that, the Philippines is probably having the worst COVID-19 situation in Southeast Asia. The slowed-down economy, coupled with rainy seasons, is weighing on buying interests,” the source added.

           Also, the plunge of iron ore prices to $100.8/mt Sept. 17 introduced bearish sentiments, leading people to take a wait-and-see position.

           India-origin offers to Manila for 5SP came at $690-$695/mt CFR, while induction furnace-based billet from Vietnam was heard offered at $705/mt and above for 5SP.

           With the unchanged sentiments within the billet CFR market, the Platts assessments for deliveries to Manila remained steady on the day at $690/mt.

---Steel Business Briefing