CIS square billet exporters mainly try to stay optimistic. So, suppliers from the Azov-Black Sea ports have become able to keep pushing prices up amid better demand from the Middle Eastern customers. At the same time, distributors of Russian semis to SE Asia have decided not to postpone sales and have already sold August output. In the Caspian region, some sellers have also attempted to raise quotations, but buyers’ refusal to accept the increase has made them leave the market.
Meanwhile, stable demand for longs in Turkey continues to support export prices for Turkish semi-finished and finished steel products. Nevertheless, market players believe buying activity is no longer at the peak and it is going down now. Thus, Turkish exporters will probably have to lower both domestic and export prices in the second half of July.
In turn, CIS square billet suppliers have lifted prices, after they caused an artificial shortage of the material in the Azov-Black Sea region. However, buyers scarcely show demand for semis, and the unstable political situation in Egypt has reduced buying activity almost to zero there. Nevertheless, quotations of square billet have grown by $10-25/t over the week. In particular, Russian and Ukrainian material is available at $670-680/t FOB. Noteworthy, deals have been made at this level already.
As expected, only Belarus SW has cut quotations by $31/t, as it intentionally priced its August casting too high. Besides, the manufacturer has shipped around 25,000 tonnes of billet at $660/t DAF under the long term contract for monthly semis supply with Latvia’s Liepajas Metalurgs.
Metinvest International S.A. (Yenakievo SW) and Metalloinvest (OEMK) are yet to determine how much square billet to be produced in August they will export, so this week the companies have been testing the market only. Demand for 125 mm material is still firm and buyers have accepted $675-680/t FOB, traders report. However, considering Turkey is the key market for 150 mm billet exports, from OEMK in particular, deals at the level of $675/t FOB sought by the supplier have not been reported. Moreover, Turkish domestic prices for the semis vary at $680-700/t EXW, excl. 18% VAT, so the price above $660-665/t FOB ($680/t C&F) cannot be workable.
Market players do not expect major changes in CIS square billet prices at the Azov-Back Sea ports next week. Nevertheless, the prices may drop by the end of the month due to Ramadan in Muslim countries.
At the same time, exporters from the Far Eastern ports have decided not to shelve sales of August casting expecting a slight downturn in demand from Asian buyers during the rainy season. In particular, Evraz Holding has already filled up August order book and is away from the market now. Market players report deals for billet for further re-rolling into rebar have been closed at $640-650/t FOB Nakhodka, while square billet with low silicon content, which is used in wire rod production, has been sold at $655-660/t FOB Nakhodka. There have been no reports on tenders of Amurmetall over the past two weeks.
The situation in the Caspian region has not improved either, as Iranian buyers are still cautious about purchases. Thus, suppliers have decided to delay offering August billet, adopting a wait-and-see mode. Early this week offers of August production of square billet from Volga-FEST and REMZ reportedly came at $660-665/t FOB (+$10/t compared to the latest deals for July casting). Yet, seeing no response from buyers, the seller has withdrawn from the market. Traders are not sure whether August output from Ural Steel will be available to Iran. Meanwhile, offers of next month''s production from Casting (Kazakhstan) will be coming starting from next week.
( Source: www.metalexpert-group.com )