March 06, 2002 

REBAR PRICE CONTINUES UPTREND
(Reflect Rising Raw Material Costs)

The seasonal upswing in construction activity has underpinned the increasing demand for steel in the Asian market.

With the relative tight supply of steel billets, the increased demand has resulted in a price increase of approximately USD10/mt from USD175/mt a month ago. This should translate to a 5% - 6% rise in rebar prices.

Taiwanese and Japanese steel mills have announced price increases on their long products.

Various steel mills in the Philippines have also announced a series of price increases from less 18% to less 14% from the May 5, 2000 Price List for Grade 40 and Grade 60 rebars within the last two weeks. The prevailing market price for Grade 33 is at less 10% for terms. The stabilizing peso-dollar exchange rate has tempered the price increases.

The price increases have been long overdue as the steel mills have been selling at a loss. The drastic increase in billet prices from USD160/mt to USD185/mt recently has left the mills with no recourse but to pass on the costs.