Byelorussian Steel Works (BMZ) has increased its quotations of steel products for June delivery. In particular, prices of rebar and square billets have gone up by $35-55/mt over the past three weeks.
Traders believe that BMZ will likely achieve its desired price increases due to the shortage of semi-finished steel from CIS producers in the Azov-Black Sea basin, which has been artificially created by steel producers. Furthermore, it is believed that during negotiations BMZ will try to raise its prices of square billets by another $10/mt. BMZ's current export prices of 3/5 SP/PS square billet are at about $635/mt FOB Odessa.
In addition, BMZ's current export offers of 12-32 mm A500C rebar are at around $680-685/mt FOB Odessa. However, taking into account that demand for reinforcing bar is still rather weak in the export markets, the steel producer may be forced to reduce its rebar prices while concluding deals. Meanwhile, quotations of rebar for the Polish market have not been changed over the past three weeks due to strength of the euro.