With the end of the European holiday season and the subsequent conclusion of the Ramadan holiday, players have been returning to the flats markets this week. Trading activities had slowed down due to Ramadan, in particular in the Middle Eastern markets. For this reason, the markets are now wondering to what extent demand will increase in the coming days.
During Ramadan, bookings for small tonnages were observed in the UAE markets, while in general demand was not at high levels. Currently, necessary materials are being supplied to the UAE markets, with Iran being preferred as a supplier due to the price decreases of the materials in stockists' hands in its domestic market. HRC offers from Russia to the UAE were standing at around $900/mt two weeks ago; however, offers for ex-Russia materials have decreased to the range of $770-775/mt CFR Dubai over the current week. In addition, HRC export offers from Iran to the Middle East and North Africa are at the level of $780/mt FOB for November production. Meanwhile, prices are also on a decreasing trend in the Saudi Arabian domestic market. Accordingly, the most recent price levels for HRC in this market are at about $1,140/mt ex-mill, while this week a $190/mt drop has been seen in the price in question. Also, price drops have been seen in Syria's domestic market where demand is on a weak trend. Domestic prices for HRC in Syria are at $750/mt, whereas CRC prices are standing at the level of $825/mt.
On the other hand, with the conclusion of Ramadan, it is heard that bookings for small tonnages are being concluded in Turkey. Nevertheless, the 41st week of 2008 was not a very lively week with regards trading activities. It is heard that Ukrainian steel producer Ilyich has offered November production HRC at levels of $620-630/mt FOB. However, new production price levels of Ilyich had been standing at about the level of $650/mt FOB in the previous week. Although price levels of Russian mills for November production have not been determined yet, the current levels are at $730-740/mt FOB.
Offer levels are decreasing in the Turkish plate market. Offers from Donetsk for commercial grade plate are standing at $800/mt CFR Turkey, whereas offers from Ilyich for plate are at $1,000/mt CFR. Meanwhile, sales prices of imported plate in the Turkish domestic market are at $980/mt.
On the other hand, in the European markets the demand is also slow, though prices are at stable levels. Hot rolled prices in Romania and Poland showed a decrease of around €80/mt ($108/mt). In addition, Eastern European mills are continuing to purchase. Buyers in Eastern Europe are purchasing plates in particular, as import material prices are more acceptable than domestic prices; however, domestic demand is not so buoyant. At the same time, demand in the southern European markets is not so high. Offers from China are standing at the level of €580/mt ($784/mt) CFR southern Europe, while sales prices of imported material are in a range of €610-620/mt ($825-839/mt) FOT in the Italian domestic market.
Overall, the bookings that will be seen in the flats market in the coming days will impart greater clarity to the actual price levels in the market.