During the eighth week of 2008 (February 18-24), the CIS export markets were characterized by increasing activity as regard purchases. As for the price trends, while both the longs and flats export markets for CIS products saw a continued price rise, the Black Sea region scrap market saw a slight decrease in A3 grade scrap price offers due to the reduction in freight rates.
On the other hand, whereas the Russian domestic scrap market saw a regional price rise, the Ukrainian domestic scrap market entered a stabilization phase. As for the CIS domestic flats and longs markets, during the week ended February 24 the markets of both countries trended upward.
Scrap: Black Sea region scrap market sees activity in scrap purchases
During the eighth week of the year, the Black Sea region scrap market saw a slow resumption of activity, as Turkish scrap consumers returned to the market following the slight decrease in scrap prices caused by the reduction in freight rates. However, not many offers of CIS origin A3 grade scrap have been present in the market, as many exporters are waiting for better times, taking into consideration the agreed 65 percent iron ore price increase in Asia and Europe.
The Russian domestic scrap market experienced a slight upward trend during the week in question. However, the Ruble 100/mt ($4/mt) price rise for A3 grade scrap in the Russian domestic market bore a regional character, while the general price range retained its stability.
Meanwhile the Ukrainian domestic scrap market entered a phase of stabilization, not showing any fluctuation during the week ended February 24.
Longs: CIS exporters push for higher prices
The main CIS billet export markets continued to gain strength during the week ended February 24. This was especially true for the Southeast Asian and Iranian markets, which accepted another price rise for CIS origin billet prices due to limited supplies. Meanwhile, the Middle East and Gulf regions showed a more moderate demand.
On the other hand, CIS exports markets for longs products showed mixed trends during the eighth week of 2008. On the one hand, another increase was seen for CIS rebar offers for the Middle East. On the other hand, export offers of CIS wire rod exporters retained their stability.
The Russian domestic longs market continued to trend up during the week ended February 24. Yet, the price rise in the rebar segment was smaller than during the previous week. In the course of the week in question, rebar increased by Ruble 200-550/mt ($8-23/mt), while wire rod retained its levels of the previous week.
In Ukraine, the domestic rebar market continued to strengthen during the eighth week. During the week in question, the rebar price in the Ukrainian retail market saw a UAH 80/mt ($16/mt) rise.
Flats: Flats prices in CIS export markets are set to rise further
During the week ended February 24, Russian and Ukrainian flats producers, who have not yet announced their new prices, increased their prices for the export markets. As during the previous week, the price increase consisted of about $100/mt. Meanwhile, the prices for flats are expected to rise further on the back of both increasing demand and prices in the CIS domestic market, and also because of the continuous rise in the international flats market.
The Russian domestic flats market was governed by price rises in the CR and HR segment during the week ended February 24. In the retail market, the price for HR increased by Ruble 150/mt ($6/mt) and the price for CR went up by Ruble 100/mt ($4/mt). In the coming month, the Russian domestic flats market is expected to rise further as domestic producers are already announcing a considerable increase for March delivery products.
In the Ukrainian domestic flats market a price rise was seen in the HR, CR and galvanized steel segment during the week ended February 24. In the retail market, HR saw a UAH 70/mt ($14/mt) rise, CR increased UAH 80/mt ($16/mt), while galvanized steel went up by UAH 30/mt ($6/mt).