During the 34th week of 2007, the CIS export markets showed diverse trends. On the one hand, CIS-origin scrap and billets are showing strong trends as regards price quotations, but these have not yet been accepted by buyers. On the other hand, the CIS-origin flats markets have not been able to overcome their downward tendencies and are moving in a similar manner to the semis and longs markets. Meanwhile, the Russian domestic flats and longs markets started to move down once again after a week of stability, while the scrap market retained its relative stability. As for the Ukrainian domestic markets, during the 34th week of the year prices in the scrap market showed some upward movements, while both flats and longs are in decrease mode.
Scrap: Russian domestic scrap market remains stable for a while
The Black Sea region scrap market was still trending upward with regard to A3 grade scrap prices in the 34th week. However, new prices, increasing by $5-10/mt over the week, could not find buyers as Turkish consumers began to ease off on their scrap purchases. However, due to the still low level of the market inventories, scrap purchases are expected to be renewed in the approaching weeks.
The Russian domestic scrap market did not see many changes during the week ended August 26. Although tensions persist in the domestic scrap market, scrap consumers are trying to avoid a hike in prices while suppliers are not seeking to provoke a market price increase by limiting domestic deliveries.
The Ukrainian domestic scrap market was governed by a more disturbing tendency during the 34th week. Thus, the recovery in export deliveries affected the domestic market negatively, pushing the domestic prices up by UAH 5/mt ($1/mt).
Long Products: Slow revival in longs export market has not yet matched exporters' hopes
Although CIS billet exporters increased their offer prices long ago, these prices have not been accepted yet by buyers in the slowly-reviving market. However, buyers in the Middle East and Mediterranean are still reluctant to pay the asked prices for billets and a only small amount of bookings have been concluded at the increased price. Yet, even with increased freight costs from the Black Sea region, CIS-origin billets are still cheaper in the Middle East than offers from Turkey and China.
The situation in the export markets for CIS-origin longs was not so promising during the 34th week. Notwithstanding signs of revival, the export market trend has not favored the CIS exporters' intention to raise their export market prices.
The Russian domestic longs market returned to a downward trend during the 34th week, after a week's break. In the course of the week ended August 26, rebar prices in the Russian domestic market fell by Ruble 300-600/mt ($12-24/mt) depending on the region. The largest price decrease was registered in the southern regions as they are the most vulnerable to imports. In addition, a slight decrease in producers' prices for September deprived local traders of reasons to hold their retail prices up.
The Ukrainian domestic market saw some price stabilization during the 34th week, due to the earlier-introduced producers' discount system. However, market players report an oversaturated rebar market. Furthermore, additional supplies were diverted to the domestic market due to the relatively low level of exports to the international markets and the restrictions on exports to the Russian market.
Flat Rolled: Only plates are showing strong signs in the export market
The 34th week ended with the inability of the CIS flats exporters to dictate price increases for new deliveries. Regardless of certain revivals seen in the longs and semis markets, the global flats market is still trending downward. Only the plate market is showing strong tendencies.
The Russian domestic flats market showed negative price corrections in HR and galvanized steel during the week ended August 26, due to the slowdown in demand from the construction sector. On the other hand, CR was able to sustain its levels of the previous week.
The Ukrainian domestic flats market experienced some negative tendencies during the 34th week, as traders following the decrease in imported material prices reduced their prices in order to be more competitive.