During the 39th week of 2007 (Sept. 24-30), tranquility prevailed in the traditional CIS export markets. On the one hand, CIS scrap exporters and buyers still failed to agree on prices. On the other hand, consumers in the billet and flats export markets were still evaluating the price changes which occurred during the 38th week. As for the CIS longs export markets, consumers were waiting for a reevaluation of the announced price levels and consequently abstained from purchases. With regard to the CIS domestic markets, during the 39th week both the Ukrainian and Russian domestic scrap markets stood still. Meanwhile, both the Russian domestic flats and longs retail markets registered price falls due to the decreases announced for October by domestic producers and importers alike. The Ukrainian domestic markets for flats and longs showed little change during the week in question.
Scrap: Consumers and suppliers fail to agree on scrap export prices
During the 39th week, the CIS Black Sea region scrap market was still on hold due to the reluctance on the part of the Turkish scrap consumers to pay the asked prices for A3 grade scrap. On the other hand, due to increased deliveries to the domestic market, the small rise in prices in the Far East, and also the rising freights rates, the Russian and Ukrainian scrap exporters were not planning to make any decrease, however small, in their Turkish market offer prices. As a result of such tensions between scrap consumers and scrap exporters, the A3 grade scrap price remained unchanged for Black Sea exports.
The Russian domestic scrap market regained stability during the week in question, after the insignificant price rise during the 38th week which did not affect the general price level.
The Ukrainian domestic scrap market saw no price fluctuations during the last week of September. However, the general situation seemed to be tense in the Ukrainian scrap market, with many predicting a new ’price race' to take place as early as the first half of October.
Longs: Consumers expect price decrease in CIS rebar offers
In the last week of September, the CIS billet export markets in the Middle East were still quiet regardless of the price decrease performed by exporters during the 38th week. On the other hand, in the Southeast Asian market a situation close to billet scarcity was seen due to the near absence of Chinese offers to the region. With limited supplies from the Chinese exporters to the region, CIS exporters may find that their offers, which are still not very acceptable in the Middle East, will be welcomed in the Southeast Asian market. The steadiest market for CIS billets exporters remains Iran, where offers for Russian billets reportedly stand at a level of $580/mt CFR Anzali.
Turkish rebar exporters were the first to respond to the billet price decrease in the 38th week with a rebar offer price reduction during the last week of September for the Middle East and Persian Gulf markets. Although, CIS rebar exporters have not yet adjusted their price for these markets, market players also expect a decrease to occur in the CIS exporters' offers as soon as the beginning of October.
During the last week of September, a new price decrease was registered in the Russian domestic longs market, with rebar declining by Ruble 290/mt ($12/mt) in the retail market. This decrease was determined by the price reductions announced by both domestic producers and importers for October deliveries to the Russian market.
The Ukrainian domestic longs market continued to experience stability during the last week of September. Meanwhile, the Ukrainian structural steel market saw a price rise in the retail price of beam, which was up by an average of UAH 130/mt ($26/mt).
Flats: CIS flats export markets again enter calm trend
After the price announcements for export market deliveries made by Ukrainian producers during the 38th week, in the last week of September the export market for CIS-origin flats entered a calm trend again. On the other hand, plates in the Southeast Asian market again assumed an upward trend, attracting the CIS producers of this material.
The Russian domestic flats market experienced some negative trends during the week ended September 30. In the course of the week in question, HR decreased by Ruble 100/mt ($4/mt) while CR declined by Ruble 50/mt ($2/mt) in the Russian retail market. In addition, prices for flats are expected to keep falling in October in the light of the latest reduction announced by several domestic producers for October prices.
Meanwhile, the Ukrainian domestic flats market was stable during the last week of September. Unlike the Russian domestic flats market, the expectations for the Ukrainian domestic market are positive both as regards price and market activity.