September 19, 2000 

REBAR PRICES INCREASE BY 3%

Rebar Prices have increased from less 25% to less 22% based on the May 5, 2000 Price List for PNS Grade 275 (ASTM A615 Grade 40) and PNS Grade 415 (ASTM A615 Grade 60) as of today. Meanwhile prices for PNS Grade 230 (ASTM A615 Grade 33) have increased to Less 20% to less 22% cash based on the same price list. The price increase are due to the following factors: 

1. Increasing billet prices in the international market which temporarily softened to USD 178 per mt but has now soared to USD 190 – USD 195 per mt in the international market. 
2. The worsening peso-dollar exchange rate which has been hovering P45.60 – 45.90 in the past week. 
3. Low inventory levels of most rebar rolling mills. 

As a result of the unattractive rebar selling prices, many manufacturers have chosen to suspend operations to avoid sustaining further losses. They have also deferred their importation of billets—the raw materials used to roll into rebars. Since importing billets requires a leadtime of at least 2 – 3 months many mills will have no choice but to suspend operations. Some mills have initiated moves to import but this will take time. The next shipment may most likely arrive sometime in late October. 

All these are clouded further by the prospects of anti-dumping duties being slapped on imports coming from Russian. The timing is ironic since local billet prices are currently at an all-time high. Furthermore, National Steel Corporation, the only consistent supplier of local billets is currently shut down. 

BILLET PRICES
Local billet prices for Grade 230 and Grade 415 are at P10,200 per mt and P10,800 per mt respectively. It will most likely increase further in the coming weeks depending on the receptiveness of the rolling mills to the increase.