Export prices of CIS flats continue to go down so far. This week, Midland Resources has begun offering July production of Zaporizhstal (Ukraine) having set the prices by $40-80/t lower than a month ago. Nevertheless, traders report the prices are nominal and the supplier is ready to make reductions while negotiating especially taking into account the most recent offers of Russian and Ukrainian producers.
Opinions of market players about further price movement have differed. Some market participants think that producers have no choice but to cut prices on weak demand. However, there are more optimistic suppliers which hope the demand will become stronger ahead of Ramadan and thus the prices will either switch trend or stabilize. In particular, market participants already report sellers of Russia's MMK intend to put up prices by $20-30/t.
Nevertheless, the latest deals for HRC of the producer have been closed at $550-560/t fob Novorossiysk, which is by $15-20/t lower than official week-ago offers. Prices to the Indian market have been at about $550/t fob, to the Middle East – $560/t fob.
Besides, sellers of Severstal material (Russia) have already filled July order book this week, and the most recent transaction prices for HRC have varied in the range $550-570/t fob St. Petersburg. Prices for CR coils have slumped in the past two weeks by $70-80/t, to $630-650/t fob St. Petersburg. At the same time, prices for similar material to Central and Eastern Europe have fallen in the same period by EUR 20/t, to EUR 600/t daf Brest. Yet, due to stronger euro, prices in the dollar terms have generally stayed unchanged – about $740/t daf.