Ex-CIS longs prices drop, though some sellers out of market

Friday, 10 July 2020 16:52:34 (GMT+3)   |   Istanbul
       

Export prices for ex-CIS long products have decreased over the week in line with the workable levels from Turkey, but also being under pressure of low demand. Most Russian mills have decided to take a step back and are expected to return to the market in one-two weeks.

Rebar export offers from the CIS have decreased by $10-15/mt over the two weeks as was expected and the product is now available at $395-405/mt FOB for August shipments, SteelOrbis has learned. The wire rod prices are at $425-430/mt FOB, down by $5-10/mt over the same period. Some wire rod has been recently traded from Ukraine to Eastern Europe and Israel.

Sources report the demand has been low on the key export destinations partly as the European quotas, specifically for ex-Russia wire rod, is getting closer to exhaustion. “There is no price now as there is no market to sell. In addition, the local market in Russia has been better, for rebar at least,” a producer said.

The domestic rebar trade in Russia has indeed been rather lively as there is delayed demand from the lockdown months. Mills report the local prices are at RUB 34,000/mt ($400/mt) CPT Moscow for July deliveries, by RUB 1,000/mt ($13/mt) up over the month. Similar increase is expected by the mills for August, SteelOrbis understands. In the Rostov area some mills are at RUB 35,000/mt ($411/mt) ex-works which is considered overpriced, while the offers in Volgograd region are even higher – at RUB 37,000/mt ($435/mt) ex-works.

Lively local market in Russia is one of the reasons why the Far East based mills like Evraz prefer not to offer exports. In the northern Europe offers from NLMK are reported at €380-390/mt CPT, which equals to around $430-450/mt FOB Black Sea, considering the estimated logistic costs. 


Most Recent Related Articles

Turkish mills prioritize rebar exports and raise prices

Turkey’s Icdas revises its longs prices to offset the currency fluctuations

Domestic rebar prices rise further in Russia amid seasonal factors

Rebar demand gradually recovers in Russia, domestic prices up

CIS-based longs exporters attempt price increases