The general market mood in the steel market at Black Sea last week was quite neutral.
Billets prices remained at levels similar to the previous week. But offer prices for finished longs have been increased more on availability constraint rather than real demand.
For finished flats market was more than controversial. With generally stable quotations, some companies were trying to push prices up. A major Ukrainian steel mill increased its offer for plates and HR to USD 550 per tonne FOB and USD 520 per tonne to USD 530 per tonne FOB ST Black Sea. On the other hand, a Russian major was offering JR at EUR 450 per tonne CFR FO Italian port and CR at EUR 500 per tonne FOB St Petersburg for North Europe.
Some market sources have pointed out that as most of the CIS steel mills are comfortable with their order books till March 2010, they are likely to start quoting much higher prices this week. As per reports, Russian Mills are claiming to be fully booked till March / April and are offering delivery time April / May onwards. Huge volumes are reported to have been booked for Middles East destinations, with Iran being the front runner with massive purchase mainly of HR.
But, doubts in future dynamics, mostly due to increasing output and stagnant demand, are growing up.