During the ninth week of 2008 (February 25-March 2) the CIS export and domestic markets experienced a strengthening in demand and a rise in prices. The CIS export market for scrap showed an increase in activity and also a slight price rise for A3 grade scrap due to both the active purchases of Turkish consumers and also on the back of CIS domestic demand. Meanwhile, the CIS exporters of longs and semis were pressing for higher prices. So far they have been successful mostly in Southeast Asia and Iran. As for the CIS flats export market, the producers have finalized their new prices. The Russian and Ukrainian domestic flats and longs markets continued to rise during the week ended March 2.
Scrap: A3 grade scrap price is on the rise
During the ninth week of the current year, the Black Sea region scrap market was characterized by increased activities, as Turkish consumers of scrap fully resumed their purchases. As a result, A3 grade scrap saw a slight increase in price for that direction on the back of a further increase in semis prices and also because of the new wave of scrap price rises in the CIS domestic markets. Meanwhile, in Russia's Far East region, the scrap export market for the Southeast Asia direction was still governed by a steadily increasing price against a background of supply scarcity.
The Russian domestic scrap market continued to see an increasing trend during the week ended March 2. By the end of February, the Russian domestic steel producers had almost completely used up their scrap stocks and so returned to the market. As a result, A3 grade scrap saw an increase of Ruble 200/mt ($8/mt).
The Ukrainian domestic scrap market returned to its price rising trend during the ninth week. The A3 grade scrap price in the Ukrainian domestic market rose by UAH 15/mt ($3/mt).
Longs: CIS exporters continue to press for high prices
During the ninth week of 2008, the CIS billet and longs export market continued to experience an upward trend in all directions. The highest price rise for billets was still observed in the Southeast Asian and Iranian markets, where steel producers are experiencing significant semis shortages and where ex-CIS billet prices are slowly climbing up to the level of $800/mt CIF level. Meanwhile, a price rising trend has also been observed in the Middle East and Gulf markets.
As for longs products, during the week ended March 2, CIS exporters were also trying to increase their offers following the example of semis exporters. However, the increased prices met with resistance from consumers, who, as of last week, have been reluctant to accept the higher prices.
The Russian domestic longs market continued to show a rising trend during the ninth week of the year. The price for rebar and wire rod in the country's retail market went up by Ruble 500/mt ($21/mt) and Ruble 350/mt ($15/mt), respectively.
The Ukrainian domestic market also showed an upward trend during the week in question, with an increase of UAH 70/mt ($14/mt) seen in the rebar retail market price.
Flats: Ex-CIS export prices rise on the back of domestic demand
During the week ended March 2, the CIS flat exporters finalized their new prices. Meanwhile, materials from the CIS were experiencing high demand especially from Turkey and Iran where domestic producers are unable to satisfy the needs of consumers. As for the future, the price for CIS origin products is expected to continue rising on the back of limited supplies from the region caused by soaring domestic demand.
The Russian flats market continued to strengthen during the ninth week. By the end of February, many domestic producers announced their new increased prices for March shipment. As a result, the retail market started to rise with a new impetus. In the course of the week in question, HR prices increased by Ruble 400/mt ($17/mt) while CR prices went up by Ruble 300/mt ($13/mt) in the Russian retail market.
The Ukrainian retail flats market continued to rise during the week in question. The retail price for HR increased UAH 180/mt ($36/mt) and the price for CR went up by UAH 125/mt ($25/mt) in the Ukrainian market.