CIS exporters of longs still stick to bullish attitude. They have attempted to raise prices in view of somewhat firmer demand for the material abroad. Foreign buyers still purchase much wire rod on the back of limited availability of local and Turkish material, and suppliers profit from it. However, positions of rebar sellers are still shaky, as only buyers in North and West Africa show much firmer demand for construction longs, while Middle Eastern consumers remain silent in view of the unstable political situation in the region.
The Europeans are still reluctant to make new purchases, and the devaluation of the euro makes prices for CIS material less attractive. So, deals are scarcely signed in this destination. Asian buyers are also careful while signing deals, and in the Caspian region no offers of CIS finished longs have been reported so far despite the fact that buyers show demand for wire rod.
In particular, ArcelorMittal Kryvyi Rih has raised its longs quotations by $10-15/t from the end of last week. Moreover, deals on wire rod have been reportedly made at $735-745/t FOB. Metinvest International S.A. and Belarus SW have already filled their June order book and are away from the market at the moment. Facilities at Moldova SW are still idle as the company faces insufficient supply of raw materials due to problems with customs clearing. However, the supplier has already announced prices for June output of wire rod.
Far Eastern buyers show persistently low demand for wire rod, so Russian mills are unable to lift quotations there. Moreover, their expectations that growing prices for Chinese wire rod will stimulate a rise in quotations of Russian material have proven wrong. After an upturn in export prices for Chinese material those for Russian longs remain relatively stable but are likely to drop. Evraz Holding reportedly offers June wire rod at $695-700/t FOB, unchanged from transaction prices for the material to be produced in end-May. Contracts on Amurmetall's wire rod have not been reported yet. Buyers bid at $670-675/t FOB or lower, but the supplier insists on prices at least by $10/t higher.
Export quotations of Ukrainian structurals have been relatively stable for a month already. However, market operators report that suppliers are ready to grant discounts of $10-15/t while signing deals.
( Source: www.metalexpert-group.com )