During the 10th week of 2008 (March 3-9), the CIS export markets were active in all product groups. Due to the return of scrap consumers to active purchases and also because of both rising demand and prices for semis and finished products, the Black Sea region scrap market saw a price rise in A3 grade quotations. On the other hand, both semis and long products from the CIS underwent another price rise during the week in question. As for the CIS flats export markets, due to strong demand and the limited volume of offered materials CIS flat products were in high demand during the week ended March 9.
As for the domestic finished steel markets, both Ukrainian and Russian domestic steel markets saw a continuation of their price rising and market strengthening trends during the week ended March 9. As for the CIS domestic scrap markets, during the period in question the Russian domestic scrap market was on the rise while its Ukrainian counterpart was relatively stable.
Scrap: CIS scrap export price rises to new levels
During the 10th week, the Black Sea region scrap market continued to experience a price increase for A3 grade scrap. With the activation of purchases by Turkish scrap consumers, the price started to climb up rapidly, increasing by $20/mt by the end of the week in question. Meanwhile, the rather small availability of offers from the Black Sea shore due to the strong demand from the domestic markets also affected the market price in a negative way.
Meanwhile, a price soaring trend was visible in the Russian domestic scrap market, where the domestic steel producers returned to active purchases thanks to the advantageous conditions of sales in both the Russian domestic and international finished steel markets. During the week ended March 9, the price for A3 grade scrap varied in the range of Ruble 7,750-8,750/mt ($325-367/mt), CPT mill, including VAT.
On the other hand, the Ukrainian domestic scrap market spent last week on a relatively stable note, with almost no price fluctuation seen.
Longs: Both CIS longs and semis rise due to tight supplies
During the week ended March 9, the CIS exporters of semis and longs continued to press for higher prices from their external consumers. The price for billets of CIS origin increased by about $20/mt and is expected to soon cross the mark of $800/mt for almost all export destinations.
The prices for rebar and wire rod from the CIS also followed the upward trend of billets during last week. However, as reported by market players, not many offers for finished long products are being given at the moment due to the strong demand in the CIS domestic markets.
The Russian domestic longs market continued to strengthen during the week ended March 9. However, the domestic retail market has not yet fully reacted to the price rise of the domestic producers. Thus, during the week in question, rebar in the retail market increased by only Ruble 20-240/mt ($1-10/mt), while the retail price for wire rod remained stable.
The Ukrainian domestic longs market reacted much quicker to the rise in the prices of the domestic producers for March production than the Russian market did. During the week ended March 9, the price for rebar in the Ukrainian domestic market saw an average increase of UAH 200/mt ($40/mt).
Flats: CIS flat products are in high demand
During the week ended March 9, the CIS flats export markets saw a strengthening trend. Following the new prices determined for the export markets at the end of last month/beginning of the current month, the CIS flats exporters have almost completed their bookings on the back of the current high levels of demand.
The Russian domestic flats market continued to see an upward trend as regards flat products during the 10th week. In the Russian retail market, the price for HR increased by Ruble 90-120/mt ($4-5/mt), and CR increased by Ruble 270- 470/mt ($13-20/mt). However, the market is yet to see the effect of the considerable increase performed by the domestic flats producers for March production.
In Ukraine, the domestic flats market continued to climb up under the effect of the reduction in the volume of cheaper imports and also due to favorable situation in the international flats market. During the week ended March 9, CR increased by UAH 200/mt ($40/mt) and HR went up by UAH 100/mt ($20/mt) in the Ukrainian domestic market.