During the 23rd week (June 2-8) of 2008, the CIS export markets saw upward price trends in terms of semis and finished steel products. Meanwhile, ex-CIS scrap retained its previous levels regardless of the increase in purchase activities in the Black Sea region.
As for the CIS domestic markets, during the week ended June 8 the scrap price continued to show a rising trend in the Russian domestic market, while registering stability in Ukraine. As for finished steel, whereas longs in both the Russian and Ukrainian domestic markets showed another price rise, flats increased in price in Russia but followed a rather stable trend, with a slight decrease, in Ukraine.
Scrap: Purchases resumed in CIS export market
A small revival in the Black Sea region market was seen during the 23rd week, as the Turkish scrap consumers slowly started to return to the market after having abstained from purchases for more than two weeks. However, the CIS scrap exporters did not react to the return of the Turkish scrap buyers with a price rise. Instead the prices for A3 grade scrap retained their previous levels as well as the wide range of price offers.
Meanwhile, the scrap price in the Russian domestic market continued to rise, showing a slight increase over the week in question. Currently, the A3 grade scrap purchase price of the Russian steel mills is moving steadily towards the level of Ruble 13,000/mt ($550/mt).
On the other hand, regardless of the market expectation that the price for A3 grade scrap will start rising in the Ukrainian domestic market, the price in this market retained its previous week's level during the 23rd week.
Longs: Prices for longs products rise in both export and domestic markets
The CIS billet exporters continued to raise their billet price offers during the week ended June 8. During the week in question, the billet offers increased by $40-50/mt. Meanwhile, offers of CIS origin billets seemed to rise even higher for the Iranian market. Market players expect another $50-100/mt increase in offers in this market in the coming weeks.
In the CIS longs market, the demand from the Middle East and Gulf countries is driving the prices of longs products in an upward direction. During the week ended June 8 an increase was registered for rebar offered from the CIS.
The upward trends for rebar continued in the Russian and Ukrainian domestic markets as well during the week ended June 8. In Russia, retail prices for rebar went up by Ruble 400-600/mt ($17-25/mt) depending on the region, and in Ukraine rose by UAH 60-150/mt ($13-32/mt), also depending on the region.
Flats: Middle East demand pushes up prices for CIS origin flats
The price offers of the CIS producers have continued to rise for the Middle East, Iran and Gulf markets where demand for flats is still fairly high. Meanwhile, the demand for flats in European countries continues to be rather sluggish, so that buyers there are unable to accept the rising prices of the CIS flats exporters.
In Russia, during the 23rd week, the domestic retail prices for flats went up again. Of the various flat products, the highest price rise was shown by HR, which rose by Ruble 400-1,200/mt ($17-51/mt) depending on the region. Meanwhile, prices for CR in the Russian retail market increased by Ruble 300-900/mt ($13-38/mt), depending on the region.
On the other hand, flat products showed a more or less stable trend in the Ukrainian domestic market. Indeed, some products saw a small reduction in their quotations.