During the 35th week of 2007, almost all product groups in both the CIS export and domestic markets were characterized by calm. The only exception was the Ukrainian domestic scrap market prices which trended downward. As for the export markets, CIS exporters were not very active, as they were simply waiting for the European buyers' post-holiday return to the market. On the other hand, prices in both the Russian domestic longs and flats markets stopped falling, as a process of price leveling between the different regions began. As for the Ukrainian domestic markets, mixed trends were seen. Whereas longs products showed almost no change, structural steel increased in price regardless of the low levels of market activity. Meanwhile, flats saw some negative corrections during the 35th week.
Scrap: Majority of scrap markets are stable
The price for ex-CIS A3 scrap in the Black Sea region market finally stabilized during the 35th week, after having followed a rising trend for quite a long time. Meanwhile, the scarcity of available A3 material in the market due to the strengthening of the Russian and Ukrainian domestic markets was relieved somewhat by deliveries of deep sea scrap.
Increased scrap purchases and scarcity of material in the market were still the main characteristics of the Russian domestic market during the week ended September 2. However, regardless of the scrap shortage, the prices for A3 grade scrap did not undergo changes in the Russian domestic market.
On the other hand, scrap still continued to rise in price in the Ukrainian domestic market, increasing by UAH 10/mt ($2/mt) during the 35th week.
Long Products: CIS longs exporters consider price rise
The Middle East and Gulf markets were still reluctant to accept the previous CIS billet price rise, while bookings were concluded for only small volumes during the week ended September 2. However, the end of the holiday period in Europe may open a new market for CIS billet deliveries. Besides, the approach of the Muslim holy month of Ramadan may give greater urgency to purchasing activities in the Middle East and Gulf markets in the short term.
The prices of ex-CIS long products were still unchanged during the last week of August. However, there are rumors in the market that Ukrainian exporters are preparing a price hike for their products to be announced in 36th week.
The Russian domestic market for long products stopped falling during the 35th week. Moreover, in some regions even a small price rise to the amount of Ruble 100-150/mt ($4-6/mt) was seen. However, the importance of this rise should not be overestimated. Rather, this rise should be considered as part of a price leveling trend, equalizing the prices between the different regions, following the widening of the gap between them in August.
The Ukrainian domestic market continued to follow mixed trends, depending on product group, during the week ended September 2. On the one hand, rebar showed a minor negative correction due to the low levels of purchasing activity in the market. On the other hand, because of the price hike announced by structural steel producers for September, these materials increased in price in the retail market, up on average UAH 60-100/mt ($12-20/mt), regardless of the current state of demand.
Flat Rolled: CIS flats exporters wait for Europe to return from holiday
The CIS flats export market retained its aura of calm stability during the 35th week. The hopes of the Russian and Ukrainian flats exporters are relying on the return of the European consumers (especially those from eastern and southern Europe) from the holiday period, which may provoke the revival of the market. Till then, the only market favorable for sales remains that of Turkey. On the other hand, plates continued to strengthen their position in most of the world's markets, especially in Asia, while the prices of Ukrainian plate exporters are acting in line with the market trend.
The Russian domestic flats market followed similar tendencies to the domestic longs market during the week ended September 2. The prices stopped falling in the market, and a slight increase in buyers' interest has been seen. However, given the producers' price decrease for September, no considerable price rise may be expected in retail prices soon.
Regardless of producers' price increases for several flats products for September, prices continued to decrease in the Ukrainian domestic flats market during the 35th week. Thus, in the course of the week in question, galvanized steel decreased by UAH 20/mt ($4/mt) while HR and CR dropped UAH 10/mt ($2/mt) each.