During the 24th and 25th weeks of 2008 (June 9-22), the CIS export markets for semis and finished steel continued to show upward trends. Yet, the new price offers met with little acceptance from buyers. On the other hand, ex-Black Sea scrap offers saw a declining tendency for two weeks in a row.
As for the Russian and Ukrainian domestic markets, different trends were present in the markets depending on the products. Whereas the Russian finished steel markets, both longs and flats, still continued to show rising trends, the Ukrainian domestic markets for finished steel products saw a trend of stabilization. As for the domestic scrap markets of both countries, they experienced more or less stable trends during the period in question.
Scrap: Export offers are down, domestic markets stable
During the 24th-25th weeks, the Black Sea region scrap market once more returned to a calm trend as Turkish scrap consumers postponed their purchases again. Although the level of their domestic stocks is falling, Turkish scrap consumers refused to accept the new price offers of CIS exporters even though the levels in question showed a decline of $10-15/mt.
On the other hand, both the Russian and Ukrainian scrap markets were characterized by a stable note during the weeks in question.
Longs: Price rises continue in semis and longs markets
The increasing trend as regards ex-CIS billet offers continued during the two weeks ended June 22. Compared to the first half of June, ex-CIS billet offers increased by $30/mt. However, new offers are hardly finding any acceptance with buyers. Meanwhile, ex-CIS offers to Iran went up by $20/mt during the last two weeks.
As for ex-CIS long product offers, an increase of $20/mt was registered in rebar offers from the CIS. However, just as in the billet market, acceptance of such an increase is proving difficult given the current state of demand.
The Russian domestic longs market continued to show upward movement during the two weeks ended June 22. During the period in question, rebar in the Russian domestic retail market increased by an average of Ruble 900/mt ($38/mt).
Meanwhile, the Ukrainian domestic longs market just saw small adjustments during the weeks in question. The rebar price rose only by about UAH 55/mt ($12/mt) during the period in question in the Ukrainian retail market.
Flats: New price hikes announced by CIS flat producers for export markets
During the fortnight ended June 22, prices for CIS-origin flats continued to soar in the Turkish and Middle East markets, which remained attractive to CIS producers of flat products. The CIS exporters of flats increased their prices for these markets, hiking them by around $100/mt depending on the products and producers. However, demand for flats in the Turkish market is not so strong as to favor acceptance of the new increased prices.
Meanwhile, the Russian domestic flats market continued its upward trend in the two weeks ending June 22. However, compared to the beginning of June, the rates of increase started to slow down. Thus, HR registered a Ruble 500/mt ($21/mt) rise, while CR saw only a rise of Ruble 150/mt ($6/mt) during the weeks in questions.
On the other hand, the Ukrainian flats market saw a stable trend during the weeks in question.