Raw materials cost pressure sentiments continued to drive steel price increase further this week at Black Sea. But it is quite difficult to divide “ideas” and “actual” market levels.
Prices for billets, at USD 600 per tonne FOB Black Sea, were accepted at large with most offers on the market ranging USD 590 per tonne to USD 610 per tonne FOB Black Sea.
The outlook has now become quite neutral as with price hike producers are offering higher volumes thus increasing material availability, which would act as a dampener to the price frenzy.
Situation for finished longs, last week, remained similar to the previous week with wide range for price ideas formed by billets dynamics.
For finished flats prices also were accepted by the market. Thus working level for the Ukrainian HRC reached USD 630 per tonne to USD 640 per tonne FOB Black Sea whereas for Russian it was USD 660 per tonne to USD 680 per tonne FOB Black Sea.
Growth rates for plates exceed HRC levels last week reflecting that the demand for plates seems to be larger than supply. This pushed the prices by almost USD 100 per tonne within last week. Latest observed deals were at USD 680 per tonne to USD 700 per tonne FOB Black Sea for A36 grade.