During the 21st and 22nd weeks (May 19-June 1) of 2008, the CIS export markets showed some mixed trends. Whereas due to the drop in purchase activity, scrap price offers saw a slight reduction, new increases in semis, longs and flats offers were seen.
As for the domestic CIS market, an upward trend in finished steel prices persisted in both the Russian and Ukrainian domestic markets. Meanwhile, in the scrap segments, the markets of Russia and Ukraine showed different trends.
Scrap: Export A3 grade scrap prices go down slightly due to low activity levels
During the 21st and 22nd weeks of 2008, the Black Sea region scrap market saw a reduction of activity from Turkish scrap consumers, who assumed a wait-and-see stance. As a result, A3 grade scrap saw a small reduction in price, but was still offered in a rather wide range of around $690-710/mt CIF.
Meanwhile, the Russian and Ukrainian scrap markets saw different trends during the weeks in question. Whereas scrap in Russia entered a new rising trend, scrap prices in Ukraine remained stable, regardless of the rumors of a possible increase.
Longs: Prices of ex-CIS billets see higher levels
During the two-week period ended June 1, CIS origin billets continued to trend upward in the export markets, with prices being adjusted several times a week. Yet, the latest level of $1,140/mt seemed to be too high to be accepted by consumers in the Middle East and Gulf.
Meanwhile, during the weeks in question longs offers from the CIS, though in small numbers, seemed to be following the footsteps of the billet price rise trend. Nevertheless, the market was very uncertain on the issue of accepting the renewed prices.
As for the domestic Russian market, during the two weeks under discussion the market registered a Ruble 2,000-2,500/mt ($85-106/mt) price rise for rebar in the retail market. The price during the weeks in question was largely affected by the price increases of the domestic producers.
In Ukraine, a price rise for long products was also registered in this market. During the two-week period ended June 1, the rebar price went up by on average UAH 200/mt ($40/mt) in the country's retail market.
Flats: No unity seen in acceptance of CIS export price rise
During the 21st and 22nd weeks, CIS flats offers went up for the European and the Middle Eastern markets. However, whereas the rising demand in the Middle East made the new offers of the CIS producers more or less acceptable, a moderate level of demand in the European market caused consumers to turn down some of the CIS offers. Meanwhile, demand from Iran has been attracting more and more CIS flat products.
Flat product prices continued to rise in the CIS domestic markets during both the 21st and 22nd weeks. However, the rise in flats prices in the domestic retail markets was not as high as had been previously expected, regardless of the price rise announcement made by the domestic producers. Thus, during the weeks in question, HR increased by Ruble 500-1,000/mt ($21-43/mt) and CR rose by Ruble 300-800/mt ($13-34/mt) in the Russian retail market. Meanwhile, prices saw a rise of UAH 160/mt ($32/mt) for HR and of UAH 51/mt ($10/mt) for CR.