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Middle East Steel prices dips under pressure of cheap imports

The domestic Middle East Steel prices declined slightly on April 1st 2009. The Middle East Flat Product Price Index MLPPI declined by 31 points whereas Middle East Flat Product Price Index MFPPI dipped by 37 points. The overall Middle East Steel Price Index MEASPI fell by 33 points.

Class

31-Mar

01-Apr

Change

%

MLPPI

3694

3664

-31

-0.8%

MFPPI

5538

5500

-37

-0.7%

MEASPI

4253

4220

-33

-0.8%

MLPPI - Middle East Long Product Price Index
MFPPI - Middle East Flat Product Price Index
MEASPI - Middle East Steel Price Index

Long Products

Category

31-Mar

01-Apr

Change

%

PI – Rebar

3280

3247

-34

-1.0%

PI - WRC

3509

3482

-27

-0.8%

PI - Angle

4807

4761

-46

-1.0%

PI – Structural

4878

4843

-35

-0.7%

PI – HEA

5396

5383

-13

-0.2%

Flat Products:

Category

31-Mar

01-Apr

Change

%

PI - Narrow Plates

5435

5390

-45

-0.8%

PI - Wide Plates

7738

7702

-36

-0.5%

PI - Hot Rolled

4307

4156

-150

-3.5%

PI - Cold Rolled

4856

4816

-41

-0.8%

PI - Galvanized

5178

5149

-30

-0.6%

PI - Price Index

The prices continued downward trajectory under pressure of cheap import from Turkey at USD 430 per tonne CNF Middle Eastern port. It is reported that China has entered the fray with offers as low as USD 450 per tonne CNF Middle Eastern port. As a result, stockiest carrying high priced inventory are under pressure to liquidate stocks at competitive rates.

Moreover it is also reported that HRC cargoes destined for China at USD 450 per tonne CNF Main Chinese ports are being diverted from high seas to Middle East and other neighboring regions due to sudden slump in demand within China. This is likely to commence downward spiral for HRC price.

Apr 5, 2009 10:24
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