The steel market remained tight last week at Black Sea with limited supply and demand. It is also should be noted that all market processes are developing amid low stocks level.
Despite minor vibrations offer level of USD 545 per tonne FOB is prevalent with residual transactions at USD 520 per tonne to USD 530 per tonne. Ironically the mills remained intransient owing to low stocks rather than demand.
Due to weak demand, finished long products did not move in tandem with billets. On one hand, price offers are staying at USD 560 per tonne whereas deals are happening for less than USD 550 per tonne. Turkish mills with low offers at USD 560 per tonne are putting pressure on Black Sea levels.
Finished flats were almost on the same level as the previous week. The Ukrainian HRCs are quoted USD 565 per tonne to USD 600 per tonne FOB Black Sea whereas the Russian mills are offering at USD 590 per tonne to USD 620 per tonne.
Demand from Turkey is on the wane with commissioning of new mills. It has led to surplus availability pressuring the offer levels.