There have been no improvements in the CIS export market for longs. Persistently weak demand in the Middle East continues to put pressure on producers, making them cut their quotations again. Traders report occasional deals for wire rod in Africa and Eastern Europe after suppliers have cut $5-15/t in a week. Moreover, though Turkish mills are trying to fix export prices, market players believe offers of Turkish material will fall further as early as next week, pulling those of Ukrainian products down too. Long steel from the CIS is expected to lose another $10/t. Thus, having tabled December quotations of rebar, BMZ is dictating prices in the CIS export market for longs again. Compared to the latest transactions, prices have lost $10/t. Besides, the seller plans to increase supply of December rebar to 40,000 t amid the seasonal downturn in demand in the Russian market.
Thus, December rebar from ArcelorMittal Kryvyi Rih is available to the Middle East and Africa at $650-660/t FOB, which corresponds to the week-ago level, yet prices may soon continue dropping, to $640/t FOB. Offer prices for wire rod have gone down by $5-15/t in the same period of time, to $665-675/t FOB. Yet, transaction levels may reach $660/t FOB if there is real interest, market operators report. In the EU, Romania in particular, contracts were last signed a week ago, at prices by EUR 5-10/t lower than initial ones.
Metinvest International S.A. is concluding deals for November production of wire rod at $660/t FOB, whereas a week earlier buyers from Africa, Eastern Europe and Baltic countries booked the material by $10/t higher. Besides, Metal Expert learns Metinvest International S.A. is testing the market with offers of Makeyevka material at $655-660/t FOB Black Sea (some 5,000 t) in view of poor demand for rebar in the CIS.
Moldova SW has reportedly sold out of November output of merchant quality wire rod (7,000 t) at $690/t FOB Black Sea. Yet, market participants say offers were coming by $10/t lower than the mentioned level and were accepted by buyers from Eastern Europe.
Distributors of MMK are selling November rolling of wire rod from the Black Sea ports only to some customers. Its material is expected to be offered in the Iranian market early next month though.
In Far East, a tender for wire rod from Amurmetal was issued this week, yet the seller has failed to close it.
( Source: www.metalexpert-group.com )