The CIS export market for longs is still seeing the seasonal lull on a big decrease in buying activity in Muslim countries during Ramadan and absence of many market players in view of the holiday season. As neither buyers nor sellers stay active, prices for finished longs have been mainly nominal this week.
The downward trend started by Turkish exporters last week gathers no pace so far. Having sold most of September output, CIS suppliers have decided to wait rather than to make reductions. Turkish sellers are no longer pessimistic ones: some mills have already voiced intentions to drive offers up.
At the same time, amid a lack of demand for rebar in the main sales markets, no offers of CIS material have been made since mid-August. Given that Turkish rebar is available at $710-720/t FOB this week, quotations of the material from ArcelorMittal Kryvyi Rih stay at $705-710/t FOB. September rolling of rebar from Novorosmetall was offered at $720/t FOB in the first half of August, and there have been no reports about the seller''s downward moves.
Demand for wire rod remains slack, but most volumes of September production have been sold, so suppliers can be in no hurry to close new deals. As a result, domestic prices have been largely unchanged over the past week.
Moldova SW still cannot reach full capacity due to problems with raw material supply, thus wire rod amounts offered for sale are still limited. Up to 15,000 t of September production was reportedly available to non-CIS customers; the volumes were sold to the Middle East and Eastern Europe at $740-750/t FOB Odessa.
Although demand from Asian buyers recovers at somewhat slower pace now, export prices have remained the same. Having sold out of September output, Evraz Holding has not started actively offering October rolling so far. Taking into account the most recent transaction prices ($705-710/t FOB), quotations of October material will probably be not lower than $710/t FOB.
As for the structurals segment, prices have somewhat grown there ($5/t up in a week) in view of limited supply. Market players say Metinvest International S.A. has already closed September order book and left the market.
( Source: www.metalexpert-group.com )