During the 17th week of 2008 (April 21-27), the CIS export markets registered price rising trends in all product groups. In the Black Sea region scrap market, A3 grade scrap has reached a new level at which it seems unlikely to stop. On the other hand, the CIS billet and longs markets were still showing price rising trends but demand for the new levels were down somewhat. Meanwhile, ex-CIS export prices for flat products showed good sales at the new increased prices.
In the Russian and Ukrainian domestic markets, prices for finished steel products and scrap continued to rise during the week ended April 27.
Scrap: A3 grade scrap export prices reach new highs
During the 17th week, the Black Sea region scrap market continued to follow an upward trend as regards A3 grade scrap prices. Due to the continuous rise in finished steel prices and also to the domestic scrap price rises in Ukraine and Russia, A3 grade scrap export offers successfully passed the mark of $650/mt CIF and at present are moving steadily towards the level of $700/mt CIF.
The domestic scrap markets in both Russia and Ukraine experienced upward trends during the week ended April 27.Although in Russia the increase in procurement scrap prices is something to which all market players have grown accustomed over the last couple of weeks, in Ukraine scrap prices finally started to rise after a rather long stable trend. During the week ended April 27 A3 grade scrap in the Ukrainian domestic market stood in a range of UAH 1,750-1,920/mt ($350-384/mt) CPT mill.
Longs: Consumers of CIS products dissatisfied with continuous price rise
CIS export billet prices saw another price rise during the 18th week. However, the new prices are yet to be accepted by consumers. Even buyers in the Southeast Asian market showed their disagreement with the newly raised prices. Currently, the most profitable market for CIS billet supplies is Iran. Yet, if the price rise continues at its current pace, Iranian consumers may turn their backs on ex-CIS billet purchases.
CIS exporters seemed to follow the example of their Turkish colleagues as regards long products and upped their prices for Middle East and Gulf region during the week in question. Yet, just as in the case of Turkish offers, renewed price offers from the CIS did not receive a great welcome from steel consumers.
The Russian and Ukrainian domestic markets for long products continued to rise during the week ended April 27. During the week in question, rebar in the Russian domestic market saw an increase of Ruble 1,000/mt ($42/mt), while the price increase for rebar in the Ukrainian domestic market was UAH 150/mt ($31/mt).
Flats: Domestic market conditions and external demand allows CIS producers to raise prices
CIS origin flat products continued to rise in price in the export markets during the week ended April 27. Due to strengthening demand in the Middle East and Iran, as well as increasing prices for flats in the European and Asian markets, Ukrainian and Russian flats producers were able to increase their prices further. In addition, price rises in the domestic CIS markets have given exporters further bargaining strength in determining export prices. Meanwhile, the reduction of import duty on HRC in Iran may result in increased ex-CIS sales to this country.
Just as in the previous week, flat products continued to rise in price in the Russian and Ukrainian domestic markets during the 17th week of the year. Regardless of the relative reduction registered in consumption levels due to the very high prices, HR increased by Ruble 800/mt ($34/mt) and CR went up by Ruble 600/mt ($25/mt) in the Russian domestic market. The price rises in the Ukrainian domestic market stood at UAH 200/mt ($42/mt) for both HR and CR.