During the 16th week, the majority of CIS steel products underwent some negative price corrections in the export markets. The only exception was ex-CIS plate, prices for which continued to rise on the back of scarce supplies internationally. As for the Russian and Ukrainian domestic markets, both longs and flats followed an upward trend in quotations thanks to the producers' price increases. Meanwhile, with the pressure from exports becoming lower, the Russian domestic (in the European part of the country) and Ukrainian domestic scrap prices are becoming softer.
Scrap: Prices continue their fall
During the 16th week of the year, the Black Sea region scrap market continued to be characterized by decrease as regards ex-CIS A3 grade scrap prices. During the period in question, the main importers of Russian and Ukrainian-origin scrap were able to push the price down by a further $5-10/mt compared to the previous week's level. As for purchases of scrap from the region, only bookings for small quantities were heard since ex-CIS scrap consumers were reluctant to accept even these decreased price levels, in the hope of pushing prices yet again.
The Russian domestic scrap market during the week ended April 22 was relatively stable, although some tendencies toward a decrease in procurement scrap prices were obvious in the European part of the country. Severstal's move of two weeks ago stirred the market a little; however, no obvious response from the main steel producers in the region was seen in the market in the course of the past week.
The Ukrainian domestic scrap market started to get some relief from export pressure during the 16th week. As a result, a price decrease of UAH 5/mt ($1/mt) was seen in the market. Although this reduction may be considered to be relatively small, many market players believe that this could yet be the start of stabilization in the Ukrainian scrap market.
Long Products: Russian domestic market keeps export prices buoyed up
The continuous decrease in ex-CIS scrap prices affected the prices of billets of the same origin in the international market. Just as a continuous increase in scrap prices was responsible for the billet price rise at the beginning of the year (and throughout almost all of Q1), the stabilization and later the decrease in scrap prices is responsible for the current billet price decline. In the course of last week, ex-CIS billets fell in price by $10/mt.
As for longs, during the 16th week of the year, the CIS export markets for most products were stable. Although the decrease in billet prices negatively affected rebar prices worldwide, the strength of the Russian domestic longs market did not allow any decline in the ex-CIS export price.
Quotations for long products in the Russian domestic market continued their upward movement during the week ended April 22. The new prices of the Russian longs producers for May production supported the price hike in the domestic retail market. Thus, in the course of the week, rebar increased by $20-25/mt while wire rod rose in price by $2-7/mt.
The Ukrainian domestic market also continued to be governed by an increasing trend during the week ended April 22. Just as in Russia, the Ukrainian producers' price increase announcement provoked a price hike from domestic traders. As in previous weeks, the leader in the price increase trend was structural steel, showing an increase of UAH 160/mt ($ 32/mt) for angle, UAH 70/mt ($14/mt) for channel bar and UAH 125/mt ($25/mt) for beam. On the other hand, rebar and wire rod prices went up by smaller degrees.
Flat rolled: Plate continue to rise in export markets
During the 16th week of the year, the CIS export flats market was stable, with the only exception being the market for plate. The scarcity of plates in the global market continued to raise the price of this product worldwide. During the week in question, ex-CIS plate prices increased by an average of $15/mt depending on the delivery region and material specifications.
The Russian domestic flats market continued to be governed by an upward trend during the week ended April 22. Reflecting traders' response to the domestic producers' price hike announcement, the domestic HR price increased by $5-15/mt and CR by 15-20/mt.
The Ukrainian domestic flats market was once again governed by a mixed trend. On the one hand, the price for CR increased by yet another UAH 75/mt ($15/mt), with HR going up by UAH 40/mt ($8/mt). On the other, galvanized steel continued to preserve its previous level.