35th week CIS domestic and export market review

During the last week the CIS origin long products prices remained still strong in the export directions due to the high demand from the local consumers, who, by trying to redirect the export volumes to domestic markets, were indirectly supporting the high export prices. Although majority of CIS long products retained previous price levels, billets grew in the course of the week by average $5-10 per mt. As far as the Russian domestic long products market is concerted, the demand for long products used in construction was still very high, especially for rebar, so that domestic producers were not able to satisfy it completely and consumers reportedly imported sufficiently large volumes of rebar from Ukraine and Moldova during last week. On the price side, last week did not show much visible price fluctuation (prices rose by less than 1 percent) in Russian domestic market. This price inactivity during the last week could be explained by month succession and usual practice of plant to announce the new month's price levels during that time. Yet, although the prices did not fluctuate in the domestic market, the price of long products still undergo positive correction in average of 2 percent from the side of domestic producers. In Ukraine the similar situation characterized the market during the last week. Although the market did not show many price fluctuations, the price announcement for September raised the construction steel prices in average by 2-3 percent. The CIS export market for flat rolled products was relatively weak last week. The fact that Russia, Ukraine and Kazakhstan utilized more than half of their quotas to the EU made CIS exporters to hold back a little export of flat rolled products. During the week ended September 03, the Russian domestic market was characterized by rather low activity and the prices were still at three weeks ago levels. Although the majority of mills determined September price levels, the fact that prices resembled August's ones changed little the overall situation in the market. The only exception may be galvanized steel, the prices of which were increased by all major producers in average by 3 percent. In addition the price of galvinised steel rose in the spot market in average by 1.2 percent during the course of the week. In Ukraine, during the last week majority of products retained their levels, with exception of galvanized steel and HR, which rose in a week by 2-3 percent.