During the 32nd week of 2008 (August 4-10), all CIS origin products saw a continuation in the reduction of price offers.
Meanwhile the CIS domestic markets saw some different tendencies during the week. On the one hand, both Russian and Ukrainian domestic scrap markets remained stable, as did the Russian finished steel market. On the other hand, the Ukrainian domestic market for finished steel saw some upward trends.
Scrap: A3 grade scrap prices slide down further
The first week of August was marked by the return of Turkish scrap consumers to the Black Sea region scrap market. However, regardless of the fact that some bookings of A3 grade scrap were concluded, the insufficient amount of bookings pushed the price down further.
Meanwhile, the domestic scrap markets of both Ukraine and Russia remained stable during the week ended August 10.
Longs: CIS billet prices maintain downtrend on back of low business activity
Influenced by the reduction of activities in the Middle East and Gulf and also in Iran, CIS billet price offers continued to move down during the 32nd week. Ex-Black Sea offer price levels are hovering just below $1,000/mt, while ex-CIS offers for Iran are at about $1,000/mt, both decreasing by another $80-100/mt. Meanwhile, even these decreased offers have not succeeded in attracting many buyers.
Following the decline in billet levels, ex-CIS longs offer prices have also decreased considerably.
A slowdown in the increasing trend was also seen in the week in question in the Russian domestic longs market, where rebar registered a decrease of Ruble 200/mt ($8/mt).
On the other hand, rebar prices saw some revival in the Ukrainian domestic market during the week ended August 10, increasing by an average of UAH 55/mt ($12/mt). However, this increase is more connected with the increased prices of Ukrainian longs producers than with increases in demand.
Flats: Softening continues in CIS flats export market
Ex-CIS flats offers continued to show decreasing trends during the week ended August 10. Due to the holiday period in Europe and the softening of demand in the Middle East and Mediterranean, Russian and Ukrainian flats exporters are slowly reducing their offer levels. Meanwhile, the Iranian market remained almost unchanged during the week in question.
The Russian domestic flats market saw hardly any changes during the 32nd week. Although slightly rising and decreasing tendencies were seen in some regions, overall they did not affect the general situation in the market.
On the other hand, the Ukrainian domestic flats market saw some upward trends in prices. In the week in question, retail prices for both CR and HR went up by UAH 30-35/mt ($7-8/mt).