It is reported that a rise in scrap prices and severe production cuts have kept billet prices supported in the Black Sea. Situation is bettering as for longs market and stagnating/stable for flats.
For longs demand at Middle East improved seriously and now it looks like there is no enough supply at Black sea export market. Some mills have sold their production for rebars and WR till end of May others were not ready for increased demand and stopped mills for maintenance or freed stocks of semis before May holidays at the region. As a result billets are totally sold out for May, for finished longs there are still possibilities to place the orders, but there is no certainty for the situation after celebrations (starting next Friday).
Traders said that the rise was vulnerable to a correction as the credit to finance construction projects remained tight in the target markets in Middle East.
Traders reported that the FOB, Black Sea prices have been hovering around USD 360 to USD 385 pmt, almost unchanged from early April, when buoyant Egyptian steel demand also underpinned the market. The sustainability of this buoyancy depends on continued production cut and increased credit to fuel demand keeping the market balanced
Item | Grade | Size | Change |
Billets | 3-5 sp/ps | 125-150 mm | 20 |
Rebars | A300C-A500C | 12-32 mm | 10 |
Wire rod | mesh | 5.5-6.5 mm | 10 |
HRC | ST1-ST3 kp/sp/ps | 2-8 mm | 0 |
HRC | ST1-ST3 kp/sp/ps (Russian) | 2-8 mm | 0 |
Plates | A36 | 8-30 mm | -10 |
CRC | 08 kp (Ukrainian origin) | 0.5-1.5 mm | 0 |
CRC | Russian origin | 0.5-1.5 mm | 0 |
Change is on April 24th 2009 as compared to April 17th 2009
Change is in USD per tonne
Delivery FOB Black sea
The gap between Black Sea port prices and Chinese Main port prices maintained corrective course and the former prices improved whereas as later prices remained largely stable:
Item | 27-Mar | 03-Apr | 10-Apr | 17-Apr | 24-Apr |
Billet | -128 | -100 | -100 | -90 | -70 |
Rebar | -140 | -100 | -80 | -80 | -70 |
Wire rod | -140 | -100 | -80 | -80 | -70 |
HRC | -120 | -90 | -60 | -80 | -70 |
Plates | 75 | 40 | 40 | 40 | 30 |
CRC | -150 | -90 | -90 | -90 | -80 |
In USD per tonne
Delivery on FOB basis