Uncertainty prevails in CIS rebar market

Uncertainty still prevails in the CIS long steel market, after the Victory Day holiday on May 9. Although the CIS long steel producers are trying to keep their prices stable, given the current situation in the market it seems that they will face difficulties in achieving their aim. The producers has initially been planning to raise their prices after the holiday. However, due to the uncertainty in the market they had to be content with maintaining their prices unchanged. In the meantime, the price variety seen in the CIS long steel market has caused the ex-CIS rebar export price range to widen. Last week, ex-CIS rebar export offers were standing at $635-645/mt FOB and some offers below this price range were also available in the market, though few in number. Moving to this week, the price range of CIS rebar export offers has widened to $630-645/mt FOB.
 
The CIS rebar market is not expected to witness significant price increases due to the approach of Ramadan which this year starts in mid-July and due to the summer holidays in Europe in August. Besides, the not very positive situation in the world steel markets also contributes to this expectation. In the meantime, since ex-Europe rebar offers are as competitive as €500-505/mt ($650-657/mt) FOB and with Turkish offers at $650-655/mt FOB, CIS producers are facing difficulties in taking a share in the Middle Eastern and North African markets.