The price movements in most of the major markets have not changed direction but have continued to see a correction - as indicated by the Orbis Steel Index (OSI) values as of the end of the sixth week of the year.
Looking at the Orbis Steel Index (OSI) data for the sixth week of 2011, the markets generally maintained a downward trend, except for the Black Sea HRC Export Index which increased. Most of the CIS flat steel producers prefer to see a clearer market trend before declaring their new prices. With the recently announced price increases of a few mills, the CIS flat steel market has only started to reach international price levels.
As of February 14, the Orbis Steel Index values are summarized as follows:
US (East Coast) HMS I/II scrap export index - with a week-on-week 2.28 percent decrease, the new index value dropped to the level of 199.5. Thus, the index value has dropped 10.74 percent in total during the correction movement observed since the third week of the year.
Turkish Scrap Index - a week-on-week decrease of 6.66 percent to reach today's value of 183.71. Thus the index value has dropped 10.5 percent in total during the correction movement seen since the third week of the year.
Turkish Rebar Index - a week-on-week decrease of 3.46 percent to drop to today's value of 155.48. Thus, the indexvalue has dropped 8.52 percent in total during the correction movement which has been in evidence since week three of the current year.
Turkish HRC Index - a week-on-week decrease of 1.25 percent to drop to today's value of 128.45, losing its flat trend of last week.
Black Sea HRC Export Index - a weekly increase of 8.39 percent to reach today's value of 146.91 percent.
*Explanations:
Turkish Scrap Index: Based on the weighted average of prices published by SteelOrbis of domestic ferrous scrap purchased weekly by Turkish steel mills, and imported HMS 80/20 CFR Turkey.
Turkish Rebar Index: Based on the weighted average of prices published by SteelOrbis of commercial quality deformed steel reinforcing bars produced and sold by Turkish mills and subsequently merchants, both in the domestic market on ex-warehouse basis and for export on FOB Turkey basis.
Turkish HRC Index: Based on the weighted average of prices published by SteelOrbis of commercial quality HRC produced or imported, and then sold by Turkish mills on ex-warehouse basis.
01.01.2005 value is 100.