CIS flats exporters have to
withstand stiff competition and poor demand – sales of March material were
closed with further $10-15/t price decrease compared with mid-month. The
outlook in unclear, but bullish sentiments of Chinese exporters after New Year
holidays will probably help CIS mills hold prices.
CIS exporters filled March order books in the second half of February. Players
say the latest contracts for Russian HRC were concluded at $385-390/t FOB
Baltic/Black Sea. Prices for Ukrainian material slipped more sharply, and deals
(mostly with the Turks) were closed at $360-375/t FOB Black Sea.
Foreign buying activity has been slow this month: thin end-demand along with
permanently falling global prices for raw materials dented buying. Moreover,
Chinese suppliers followed rather aggressive price policy, which also affected
CIS exporters' positions.
Market sentiment has improved somewhat by end-month. Chinese suppliers have
raised prices slightly after the holidays; besides, European mills are also
attempting price increases due to the absence of Italy's Ilva, the key market
player. Still, market insiders hesitate to speak of the end of a long-lasting
downtrend. “Outlook is still uncertain, there are some positive signs but it is
too early to make predictions... iron ore [in China] might drop, and thus
another decrease in finished steel prices is possible,” one market source told
Metal Expert.
Source: metalexpert-group.com