At the same time, CIS suppliers in the ports of the Far East still profit from high buying activity of Asian customers. Russian mills keep raising prices in view of limited availability of their semis to be produced in June. The upward trend is expected persist until the end of May, and after the rainy season starts consumption of semis will slump in the region.
While last week local buyers refused to accept offers of billet from EvrazHolding at $650-655/t FOB and bid $10/t below, this weak they have signed a number of deals at this level. Besides, this week Amurmetall has reportedly closed tender with a sale of square billet at $650/t FOB.
CIS billet exporters in the Caspian region remain in wait-and-see mode and plan to start selling June output next week. As yet, resellers test the Iranian market. They have been raising their quotations to Iran by $10-20/t for the second week in a row already.
Noteworthy, in view of current prices for semis in the Azov-Black Sea region, it is feasible for suppliers to sell billet produced by REMZ and Volga-FEST at no lower than $640/t FOB Caspian Sea. At the same time, Iranian buyers bid no higher than $620-630/t FOB.
( Source: www.metalexpert-group.com )