It is reported that the price rally continued this week and most of products added up to USD 100 per tonne bring back the memories of first half of 2008.
Most CIS billets producers had in mind price idea of USD 540 per tonne to USD 550 per tonne FOB Black Sea when the week started but even to their surprise just in 5 days offers climbed to USD 595 per tonne to USD 600 per tonne FOB
As per market players, these levels are likely to be accepted in the coming week.
It is learnt that rebars from Ukraine, namely from ArcelorMittal Kriviy Rih, were offered at a price not lower than USD 620 per tonne FOB ST Black Sea.
But the situation on the market is quite strange. There is a demand, but April production seems to be allocated and producers do not hurry to offer May watching billets dynamics. So, the indicated level of USD 620 per tonne is quite theoretical and there are just no volumes.
All increases have been determined by the run of the raw materials, with scrap acting as front runner. Prices in Turkey have reached the USD 450 per tonne CFR FO and are still edging up targeting the USD 500 per tonne. Buyers are actively trying to buy as much quantities as possible in the attempt of anticipating further increases. Available quantities are still rather scarce which are even more heating sellers expectations.