The situation has become slightly better in the CIS export market for finished longs. Now that Turkish steelmakers have managed to close a number of deals with foreign buyers at higher prices, CIS sellers can start pushing offers up. However, demand has not yet improved greatly. In particular, Iraqi consumers are still interested in rebar, but do not accept prices for CIS material. Buyers from Africa, the Middle East and Western Europe are ready to purchase small volumes of wire rod.
So, offer prices for January production of CIS rebar have grown by $10-25/t compared to the recent deals for December output. Wire rod sales started a week ago (January output), and quotations of the material have stayed almost unchanged over this period.
Having sold the remaining volumes of its December rebar production to South Africa, ArcelorMittal Kryvyi Rih has raised offers of January output by $10-25/t, though no contracts have been signed yet. Last week, small amounts of January wire rod production were sold to Africa and Asia (India), and only the bottom end of the price has moved up by $10/t by now.
Official prices for wire rod from Metinvest International S.A. have gained $5/t over the week, however contracts are concluded at last week’s $650/t FOB Black Sea.
Market players report Moldova SW has also voiced its prices for January wire rod, but made no deals at them so far.
Buying activity has been very low in the Far East in the second week of December. Evraz Group is now out of the market, having sold all of its February output; Amurmetal has not announced a new tender.
( Source: www.metalexpert-group.com )