Scrap
The situation in the
scrap market changed little during the last week: as before, the
CIS origin A3
scrap export prices continued to decrease in the traditional export markets, while in the Russian domestic market the procurement
scrap prices were reaching new heights, and Ukrainian domestic
scrap market stayed still.
The main reason for the continuous, for the last couple of week, decrease in the
CIS origin A3
scrap export prices is the ’wait and see' policy of Turkish consumers, who were buying only small tonnages of
scrap during the last week.
The situation in Russian ports continued to be complicated during the last week. Whereas in the Black sea ports the procurement
scrap prices continued their gradual decline due to the low activities of Turkish consumers, in North ports, in particular in the port of St. Petersburg, the A3
scrap prices were at rise, being affected by the rise in the domestic prices.
As far as the Russian domestic
scrap market is concerned, the procurement prices for A3
scrap continued to increase. The procurement price levels in Ukrainian market were still during the last week.
Long products
The export prices of the
CIS origin billets and long products retained their previous levels during the last week. But the offers from the
CIS were almost absent due to the low level of demand in the export markets. Thus, Ukrainian billets were offered at $390-395 per metric ton FOB Black Sea while the same materials Russian origin were offered at a bit higher levels- $395-400 per metric ton FOB. However, both Russian and Ukrainian exporters intend to rise the prices in the near future hoping for higher demand in September.
In the Russian domestic market the demand for long products continued to be high, especially for
rebar throughout last week, pushing the prices upward. Thus, for a week the price of
rebar added in average 3 percent while beam and channel bar added 2 percent in the Russian domestic market.
The similar tendency was observed in Ukrainian domestic market, though the increase in the long products segment was not as large as in
Russia. For instance, in Kiev, price of
rebar increased 1.4 percent, that of beam increased 0.6 percent, that of angle increased 1.42 percent and that of channel bar increased 1 percent week on week during July 31-August 7 week.
Flat Rolled
The supplies of the
CIS origin flat rolled during the first week of August were not very considerable and the prices retained their levels. Also during last week the main
CIS producers announced the export prices for August
production. For instance, Russian
Severstal announced a $5 per metric ton decrease in the prices for
HRC,
CRC and pickled & oiled coil of August
production. This price change was the first for a couple of months since
Severstal did not change its export prices for June and July
production.
In
Russia, however, the uncertainty had returned to the flat rolled market. The prices for HR and CR were moving again in opposite directions during the last week. Thus, during the week ended August 6, HR showed an increase of average 0.75 percent in the Russian domestic market, while CR and
galvanized steel decreased by twice as high rates during the same period of time.
Ukrainian domestic flat rolled market also showed diverse tendencies during the last week but in different respect. Thus, as in
Russia, the price for HR increased a little and CR decreased. However, the price of
galvanized steel increased by more than 3 percent.