During the 29th week of 2008 (July 14-20), the CIS export markets followed tendencies similar to those seen during the previous week. Thus, whereas the Black Sea region scrap market remained calm with just a slight price reduction, both CIS semis and longs continued to slide in price. Meanwhile, ex-CIS flats in the export markets, though they were able to preserve their levels to a large extent during the period in question, also started to see some correction in price levels.
Meanwhile, the CIS domestic markets for most products were more or less stable during the period in question. The only exception was the Ukrainian domestic market for scrap which showed a fluctuation in price.
Scrap: CIS export market still shows no signs of revival
During the 29th week, the Black Sea region scrap market was calm as regards purchases of A3 grade scrap, registering a correction in A3 grade scrap offers from the region. Due to the inactivity of Turkish steel producers in scrap purchases, CIS scrap exporters were forced to reduce their price offers by a greater degree. Some offers were even heard below the level of $600/mt CIF Turkey.
Meanwhile, the scrap price for A3 grade scrap in the Russian domestic market stood still during the week in question; whereas in the Ukrainian market prices saw an increase. Thus, during the week ended July 20, the average price for A3 grade scrap in the Ukrainian domestic market went up by UAH 95/mt ($21/mt).
The offers of the CIS producers of billet continued to slide down during the week ended July 20. Due to the availability of cheaper offers from Chinese and some other Southeast Asian producers for export to the Middle East and Gulf markets, as well as due to the strength of supply offers compared to demand levels in the countries in question, CIS billet exporters decreased their export offers by $20/mt. Meanwhile, also due to the tight competition from Chinese producers, CIS exporters to Iran were forced to reduce their offers by about $20/mt during the week in question.
Meanwhile, CIS origin longs also saw a price decrease in export offers during the 29th week. Under the influence of developments in the CIS semis export market, CIS longs exporters were not able to sustain their previous offer levels and so reduced their offers by on average $10-20/mt depending on the product and the market.
During the week in question, the CIS domestic markets for long products moved on a stable trend, seeing only a small upward trending movement in prices.
Flats: Ex-CIS flats exporters largely preserve their levels
It seems that the CIS flats export markets have started to follow the same trends as seen in the CIS semis and longs markets. Due to a rather moderate level of demand for flats from the Middle East market and from Turkey, many exporters from the CIS were unable to increase their offers, but rather were obliged to slightly reduce them.
The Russian domestic flats market saw a slight upward trend during the week in question. Thus, the retail price for HR went up by Ruble 100/mt ($4/mt), and for CR the price increased by Ruble 200/mt ($9/mt).
Meanwhile, the Ukrainian domestic flats market saw a rising trend only regarding the CR price, posting an increase of about UAH 50/mt ($11/mt) during the week ended July 20.