Latest situation in CIS and southern European flats markets

Monday, 23 March 2009 17:16:13 (GMT+3)   |  
       

Flats imports from CIS countries have been declining for a number of reasons; the decreased demand for import materials in markets such as Europe and Turkey, the continuing purchases of producers in these regions from their local markets, and also the ongoing destocking process in these markets. In this situation, the "life savers", so to speak, of the CIS countries are China, India and Vietnam. Offers are still given to China from the CIS countries, while the most recent bookings concluded have been for slabs. CIS countries' slab offers to the Far East are standing at the level of $340-345/mt CFR, and it is heard that bookings have been concluded at the levels in question. Meanwhile, general HRC offers from CIS countries are in the range of $340-370/mt FOB. Turning to plates, demand has been trending slack all over the world, while very competitive offers are heard for ready stock materials. For new production materials, Ukrainian plate mills' common grade plate offers are standing at $420-500/mt FOB.

As for the southern European market, it cannot be said that there has been much change as compared to previous weeks. In Italy, sales prices for HRC are at €300-330/mt FOT. Also, CRC prices on ex-works basis have recently decreased from €450/mt to €400/mt. Overall flats demand in the Italian market is at low levels as compared to last year, due to the slowdown in end-user demand.

With regard to the Portuguese flats market, prices have decreased again, by €20/mt. In this market, flats prices were previously at high levels compared to the other southern European markets; however, following the decreases seen almost every week, prices have declined to about the same levels as in other European countries. Local price levels for HRC in the Portuguese market were last week in a range of €410-420/mt ex-warehouse. Base prices of HRC sales from Italy to Portugal were at the level of €330/mt delivered to Portugal. Meanwhile, last week in the Portuguese domestic market base prices of HDG decreased to the level of €450/mt ex-works.

Moving on to the Romanian and Bulgarian flats markets, during last week in particular, inquiries for plate and CRC started to be heard from stockists to traders. Purchases have been concluded to replace material sold from stocks. HRC prices of mills in Romania and Bulgaria are at the level of €330-350/mt ex-works. In addition, stockists' plate prices are at €430-440/mt ex-works in Bulgaria.


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