Asian billet and rebar prices were on an uptrend Oct. 6, amid increasing raw material prices, though regional buyers stayed on the sidelines.
The CFR Southeast Asia billet index was assessed at $710/mt Oct. 6, up $5/mt on the day, for deliveries to Manila.
Vietnamese mills were heard raising offers to $695/mt FOB. If normalized for a freight rate of $35-$40/mt from Vietnam to the Philippines, offers would equate to $735-$740/mt CFR Manila, up from offers at $705-$710/mt CFR seen earlier in the week.
Meanwhile, regional buyers kept their bids unchanged at $700/mt CFR Manila.
Bullish sentiment in the Japanese scrap market pushed up light grade H2 material offers to Vietnam to $530/mt CFR on Oct. 6, up $20-$25/mt on the day. As such, Vietnamese steelmakers had to raise their billet sale prices following the higher scrap prices, sources said.
S&P Global Platts assessed rebars delivered to Singapore at $725/mt CFR on Oct. 6, up $5/mt on the day, though sellers stayed away from offering amid lackluster demand.
"Indian sellers are lifting steel product prices by around $20/mt because of the recent met coal shortage. But I think outlook for rebar is mixed," a market source said.
"Rebar demand will continue to worsen if COVID-19 is not effectively controlled in Singapore. Operating rates at construction sites will have to drop if workers get infected."
As Indian met coal production slowed down over the past two years with limited output, reliance on imports from South Africa increased. But supply from South Africa has been tight recently as China started to compete for the same volumes, sources said.
-- Steel Business Briefing