CIS-based longs exporters have generally been following the developments of the Turkish market in their pricing, and were forced to cut their offers by around $10-20/mt at the end of January-early February. However, as the uptrend in the scrap segment is clearly getting stronger, the CIS-based mills are expected to take upward steps as well. Still, some of the suppliers, especially from Russia, have little interest in rebar exports due to better local pricing, SteelOrbis understands.
Since the end of last week rare ex-CIS rebar export offers have been reported at $590-610/mt FOB from Russia and Ukraine. However, since scrap prices in Turkey have hit $410/mt CFR for HMS I/II 80:20, the CIS-based exporters are expected to increase their prices by a minimum of $10-15/mt next week.
In the local market in Russia, domestic rebar prices in the Central region are at $644/mt (RUB 57,000/mt) CPT, while in the Southern region business is being done at $599/mt (RUB 53,000/mt) ex-works/ex-warehouse, sources report.
Export wire rod prices from the CIS are mainly ranging within $670-680/mt FOB this week. However, some mills have reportedly been ready to deal at $660-665/mt FOB early this week. “After this deal for scrap, Turkey will be definitely above $700/mt FOB for wire rod, so the CIS will increase too,” a trader told SteelOrbis.
Local prices in RUB include 20 percent VAT, prices in US dollars do not.
$1 = 73.77 RUB