During the 38th week of the year (Sept. 17-23), most of the CIS export markets were in a calm state as regards purchases of material. On the one hand, consumers of ex-CIS scrap were still reluctant to pay the asked-for prices, as were consumers of ex-CIS billet. On the other hand, although Ukrainian flats producers announced a price rise for the Turkish market, the other delivery regions for CIS-origin flats do not look so promising. Meanwhile, some signs of stabilization were seen in the Ukrainian domestic markets for scrap, longs and flats. However, a rising trend in Russian domestic scrap and a decreasing trend in the Russian domestic longs market have also been observed.
Scrap: CIS export markets abstain from purchases
The Black Sea region scrap market was calm during the week ended September 23, with hardly any deals heard for CIS-origin scrap. Turkish scrap consumers abstained from A3 grade scrap purchases due to the increased prices caused by the rising freight rates. On the other hand, the volumes offered from the CIS were very small since it was still difficult to book ships for the transport of scrap cargoes. Meanwhile, the offers of available ex-CIS scrap varied in the range of $290-295/mt FOB Black Sea.
In the Russian domestic scrap market a trend of gradual price increase was seen during the 38th week of the year. The average price increase during the week in question amounted to Ruble 150/mt ($6/mt). However, it is believed that that this price hike is of a temporary nature, resulting from problems with domestic scrap supplies.
The Ukrainian domestic scrap market saw some stabilization during the 38th week. Apart from price rises by individual mills, no changes in the average price for A3 grade scrap were seen.
Longs: Ex-CIS billet prices down; will longs follow?
It seems that billet consumers in the Middle East and Gulf Region have been able to get what they wanted - a price decrease. As a result of the market pressure and the rising freight rates, CIS origin billet prices went down by $5/mt during the week ended September 23. However, the demand from the region is yet not strong enough for even the decreased price levels to be accepted.
The level of activity in the CIS export longs market was at a low point during the week in question, as buyers have chosen to wait, especially now with billet prices decreasing a bit.
The Russian domestic longs market was once again characterized by a price decrease trend in the week ended September 23. During the week, the retail price of rebar dropped by Ruble 340/mt ($14/mt) in Russia's central regions and by Ruble 300/mt ($12/mt) in the country's Ural and Far East regions.
Due to the slightly rising trend in demand in the Ukrainian domestic market, domestic traders were able to maintain their longs price levels in the 38th week.
Flats: CIS exports markets do not look promising
During the week ended September 23, several Ukrainian producers increased their HR offers for the Turkish market by $10-15/mt for November delivery. Meanwhile, the other CIS flats export markets are far from perfect. The European market has not shown any signs of regeneration, while the North African and Middle Eastern markets are in currently in a waiting phase.
The Russian flats domestic market showed some stabilizing signs in the week ended September 23. Although some price adjustments (upward and downward depending on the region) were seen, no major changes occurred in the retail market prices.
The Ukrainian domestic flats market did not see many changes either as regards retail flats prices in the 38th week.
It seems that both the Ukrainian and Russian domestic flats retail markets were standing still, waiting for next month's price announcements by the domestic producers.