During the 50th week (December 10-16) of 2007, ex-CIS prices for the majority of steel products continued to rise due to the high demand from export markets. On the other hand, while both the Russian and Ukrainian domestic scrap markets did not register any substantial price changes, other products followed mixed trends. For instance, for the first time in a couple of months, the Russian rebar and CR markets registered a rise in retail quotations. On the other hand, Ukrainian domestic rebar prices saw a slight decrease in price, while the county's flats market, just like the Russian HR domestic market, remained unchanged during the week ended December 16.
Scrap: Ex-CIS scrap maintains price increase trend
During the 50th week of 2007, the Black Sea region scrap market saw a continuation of its price rising trend, supported by both the general rising tendencies in the rolled steel market and the desire of end-users to build substantial stocks prior to the holidays. Thus, during the period in question the A3 grade price increased by about $30/mt. Meanwhile, the Far East market saw some reactivation of scrap purchases during the week ended December 16: the prices in this market which have been on a declining trend, unlike for Black Sea directions, are expected to show positive trends soon.
The Russian domestic scrap market showed almost no movement during the 50th week. Due to the approaching holidays and the completion of winter stocking up activities, Russian steelmakers were not very active in the scrap market.
During the 50th week, the Ukrainian domestic market saw a slight upward movement in the upper level of scrap prices. However, this was determined by demand for scrap from individual mills.
Longs: CIS longs exporters register successful sales to Middle East
Due to rebound of the Middle East market, the Russian and Ukrainian billets and longs exporters have almost completely lost their interest in the Southeast Asian market. Thus, only minor sales of ex-CIS billets and longs were registered in the latter market during the 50th week, while the majority of supplies were directed toward the current most profitable regions - the Middle East, Gulf and North Africa. Meanwhile, with increased demand from these regions, the price offers of CIS exporters continued to rise as well. For instance, in 50th week alone, rebar and wire rod price offers to these regions were hiked by $20-30/mt and are expected to continue their upward trend.
The Russian domestic longs market showed a rather surprising trend - a price rise in the rebar segment of the market - during the week ended December 16. The approaching holidays, the declining domestic stocks levels and the high demand from external markets all led to a renewal of the price rising trend in the Russian domestic rebar market. During the week in question, the rebar price in the Russian retail market increased by Ruble 200/mt ($8/mt).
Meanwhile, rebar in the Ukrainian domestic market registered a slight downward trend, dropping UAH 20/mt ($4/mt) during the week ended December 16. As for other longs products, few changes in their levels were observed in the market.
Flats: Ex-CIS flats show upward trends
During the 50th week, ex-CIS flat product export offers continued to rise in price. Thus, for the Turkish market, ex-CIS flats increased by $20/mt in the given week. Meanwhile, an even higher rise in prices in expected due to uncertainty in the market about the situation in the New Year. Furthermore, flat products saw an upward trend in other markets, such as the Middle East and North Africa during the week. The only calm market for the moment is the European market.
The Russian domestic flats market, just like the country's longs market, saw a positive trend in some products. Thus, during the 50th week, CR in the Russian domestic market saw an increase of Ruble150/mt ($6/mt). Meanwhile, during the same period, HR showed a slightly decreasing trend in the market.
On the other hand, the Ukrainian domestic flats market was stable during the week ended December 16.