During the 28th week of 2008 (July 7-13), the CIS export market for flats retained its calm trend, while the semis, longs and scrap markets all registered a negative correction in prices.
The Russian domestic markets for all the products in question showed calm tendencies, while the Ukrainian market registered a price increase across all products groups.
Scrap: Black Sea region scrap market trending downward
A stagnant trend continued to dominate the Black Sea region scrap market during the 28th week of 2008. As Turkish scrap consumers continue to abstain from active purchases, scrap suppliers from the Black Sea shore continue to offer price reductions. During the week in question, price offers for A3 grade scrap saw a decrease of about $30/mt.
Meanwhile, whereas the scrap price in the Russian domestic market retained its levels, scrap prices in the Ukrainian market started to show an upward tendency. Thus, during the week ended July 13, A3 grade scrap in the Ukrainian domestic market went up by UAH 50/mt ($11/mt).
Longs: Both ex-CIS billet and longs show reduction in prices
During the 28th week, CIS billet offer levels for export saw another reduction. Many market players have linked this new price trend not only with the level of demand but also with the increased number of offers from China. In addition, whereas during the 27th week the Iranian market saw continued stability, during the 28th week ex-CIS offers even for this generally strong market saw a reduction of $50/mt.
Meanwhile, longs offers from the CIS also followed a price reduction trend during the 28th week. With increased competition in the Middle East and Persian Gulf markets against the background of a slight slowdown in demand, exporters were obliged to adjust their prices downward.
The Russian domestic longs market saw a relatively stable week compared to the 27th week. The prices for rebar in the retail market saw little correction during the 28th week.
On the other hand, the Ukrainian domestic longs market continued to show an upward trend. During the week in question, rebar in the domestic retail market increased UAH 110/mt ($24/mt) on average.
Flats: Ex-CIS flats market posts calm trend for most products
During the 28th week, CIS flats retained the same price levels for most of the export markets, while offers of individual producers for certain markets were slightly reduced. Meanwhile, demand for ex-CIS plates is rising in most of the exporting regions; in particular, a good rising trend was seen in the Iranian domestic market.
The prices for HR and CR in the Russian domestic market saw a rather stable trend during the 28th week. Meanwhile, galvanized steel registered a rising trend. During the week in question, galvanized steel prices in the Russian domestic market went up by Ruble 900/mt ($39/mt), on average, depending on the delivery region.
The Ukrainian domestic flats market continued to show an increasing tendency during last week. Thus, CR increased by UAH 30/mt ($7/mt) and HR went up by UAH 90/mt ($20/mt) during the week in question.