The flat product prices are barely managing to remain stable amidst cracks in long product and scrap prices. The flu seems to have afflicted HRC prices which have mildly dipped by USD 5 per tonne to USD 10 per tonne FOB Black Sea after European and Middle East market emerged damp squib.
However CRC market seems give some reasons to cheer up with most of the mills eager to fill October order books. In the process they are testing price hikes to the tune of USD 10 per tonne to USD 20 per tonne. The CRC market is in for a surprise spurt in demand as mills all through the Q2 had truncated production of value added products in order to minimize cost. As a result stocks have depleted leading to increased demand regardless of market swings.
Change is on Sep 17th 2010 as compared to Sep 3rd 2010
It is learnt that the Ukrainian mills are offering in the range of USD 710 per tonne to USD 720 per tonne FOB Black Sea whilst Russian mills are offering at USD 730 per tonne to USD 750 per tonne FOB Black Sea, USD 20 per tonne jump from month beginning. However booking levels are USD 690 per tonne and USD 710 per tonne respectively.
Typically the market is still agog with skepticism as buyers feel these levels are high and expect correction in early October as autumn wanes and stocks are replenished.
Demand is strong from Iran but European market continues to play hide and seek as buyers prefer domestic sources over overseas suppliers when the differential is marginal.