The situation in the CIS export market for longs has somewhat stabilized by mid-July. As before, there are only sporadic upturns in demand for the material, which is mainly booked by buyers from the Middle East, who raised purchases at the end of last week ahead of Ramadan. Buyers from North Africa, having purchased enough material in late May-early June, are currently inactive. Large sales to Europe are unlikely due to the holiday season. Besides, the material from the CIS becomes less attractive as euro is strengthening. At the same time, exporters of finished longs from Russian producers are still quite confident in the Far East, being supported by Asian sellers, who also intend to keep prices from falling during the rainy season.
Notably, suppliers from Azov-Black Sea ports have tried to raise quotations of longs by $5-10/t over the week, though they have not made any deals at new prices yet. However, having sold most of August rolling of the material, sellers remain optimistic. Market players say buyers can receive $5-10/t discounts after negotiations, depending on a customer.
Having cut rebar prices by some $10/t last week, Belarus SW has closed sales this week already. Russia’s Novorosmetal is reportedly focusing on domestic sales, so the company will hardly grant any discounts to foreign buyers.
In Europe, CIS exporters of finished longs still face difficulties as competition (with both local and other foreign suppliers) remains tough while demand for the material in domestic markets is still slack. Sellers of finished longs from Ukraine are unwilling to cut offers substantially, being able to sell the material to Middle Eastern buyers at more attractive prices. Deals for wire rod from Moldova SW have reportedly been closed at prices by at least $10/t lower than initial offers.
Meanwhile, exporters, doing business at Far Eastern ports, are keeping prices steady amid favourable situation in the region. Quotations of wire rod from Evraz Holding have been at $700/t FOB for over a month. Notably, the company sells August rolling of the material at this level. Despite the rainy season in SE Asia, prices are unlikely to dip so far. Demand from Asian traders, who buy the products on long-term expectations, for the material with September delivery is expected to stay firm. Besides, CIS exporters’ position is supported by the fact that Chinese exporters are not going to cut export prices soon due to strong demand in the domestic market.
The situation in the segment for structurals is more stable, with no considerable price fluctuations seen for the past two weeks. Notably, the material made to EN standards is offered to European buyers by $15/t higher.
( Source: www.metalexpert-group.com )