CIS longs exporters have mainly to keep following the downward trend seeing slack demand in the key sales markets. Moreover, a drop in Turkish suppliers’ prices ($15-20/t over the week) has left them no other choice. A shortage of July production caused by limited supply from one of the major longs suppliers has failed to spur buying. Moreover, sporadic upturns in demand in North and West Africa turned to be not enough to keep prices from falling.
Customers doubt that prices will stabilize next month, thus they are afraid to close new deals and stay in wait-and-see mode. However, producers still anticipate a seasonal surge in buying activity on the need to replenish stocks in Muslim countries before Ramadan, so no considerable discounts are granted.
Notably, ArcelorMittal Kryvyi Rih has announced prices for August output having left them almost unchanged. At the same time, having closed July order book for wire rod from Makeevka SW at $750-760/t FOB, Metinvest International S.A. does not offer August production so far.
Amid weakening demand in foreign markets, Moldova SW, who was unwilling to sell July production of wire rod below $760/t FOB early in the week, has had to lower offers too.
In Europe, CIS exporters have been forced to drive quotations down again: those of rebar and wire rod have lost EUR 5-15/t over the week. Suppliers hope to compensate for a lack of sales in the Middle East by dealing with European buyers, so they have cut prices to the level of last-week bids or even lower. Yet, given that only August production is offered now, customers refrain from singing contracts as the material will be delivered only in September: position of exporters has weakened already, and they doubt so far that the situation in Europe will improve significantly in autumn.
Quotations of structurals have gone down by $10/t from the upper end of the price range over the week, but the material is still in low demand.
( Source: www.metalexpert-group.com )