Exporters of CIS square billet have predictably started June with price increases. Moreover, the growth in the Azov-Black Sea basin has been much sharper than expected ($15-20/t in transaction levels over the week), while in Caspian and Far Eastern region the rise has been slight ($5-10/t).
The main reason for the jump in semis prices at Azov-Black Sea ports has been an upswing in demand for construction steel in Turkey, as well as higher activity of Middle Eastern and North African buyers. However, a seasonal slackening of demand is expected as soon as by mid-month, and this may cause a price rollback.
Therefore, suppliers are trying to get as much profit as possible amid the buying boom expected to be short-term. Last week square billet was available at $645-660/t FOB, but now sellers are quoting $680-685/t FOB. However, just several producers have managed to sell at these levels, whereas by the end of the week most of buyers have been ready to consider the offers at no higher than $660-670/t FOB. In particular, ArcelorMittal Kryvyi Rih has reportedly sold a small amount of July casting at $680/t FOB, while the latest sales of the material produced in late July-early August by IUD were at $680-685/t FOB. Elektrostal (Kurakhovo), who reported last week it was booked up for July, has again appeared in the market with July output, probably after cancelling previous contracts. Thus, the supplier has reportedly signed two deals for 5,000-tonne lots at $660/t FOB and $670/t FOB.
( Source: www.metalexpert-group.com )