During the 35th week of 2008 (August 25 - 31), the CIS export and domestic markets alike showed dropping trends. Due to low demands both in the international and domestic markets for finished steel products, CIS steel producers continued to reduce their offers to perform at least some sales. In the scrap markets, both Ukrainian and Russian domestic markets continued to see reduction on high stocks and low exports.
Scrap: No activity seen as regards A3 CIS-origin scrap
During the last week of August, the Black Sea region market has not yet gain momentous in A3 grade scrap sales. The main reasons to it was inability of ex-CIS scrap exporters to reduce their price offers to the level desirable by Turkish scrap consumers on the background of reduced scrap price offers from other regions.
The Ukrainian and Russian domestic scrap markets continued to trend downward. Due to reduction in exported volumes from both countries and also because of increasing domestic steelmakers' scrap stocks, the procurement prices for A3 grade scrap continued to fell.
Longs: CIS exporters yield holding prices
During the week ended August 31, the CIS billets and rebar price offers alike saw a considerable reduction regardless of resistance seen from producers to decrease their prices. Thus, during the week in question, on the background of low demand and, thereby, unwillingness of consumers to pay asked prices, CIS billets saw up to $100/mt decrease in their FOB offer prices while rebar saw a reduction of about $25/mt. Meanwhile, the market players believe that the reduced levels are not the lowest points the prices of billets and rebar can achieve.
Both Russian and Ukrainian domestic markets continued to see reduction in price levels for longs during the last week of August. Due to reduction in price lists of domestic producers, rebar saw a reduction of UAH 200/mt ($42/mt) and Ruble 1,000/mt ($40/mt) in Ukrainian and Russian retail markets respectively.
Flats: ex-CIS flats offers drop on low demand
The offers of ex-CIS flats saw also reduction during the 35th week. The current low demand for flats especially affected the prices of Ukrainian producers, which on the low level of export and domestic bookings dropped their offer price considerably. It seems that the low level of demand in flat segment will still continue for quite a whole.
Flats prices in both Russian and Ukrainian domestic markets followed the footsteps of the export market. Thus, during the week in question, HR went down by UAH 130/mt ($27/mt) and CR dropped UAH 70/mt ($15/mt) in the Ukrainian retail market. On the other hand, HR decreased Ruble 400/mt ($16/mt) and CR wet down Ruble 200/mt ($8/mt).