Improved market sentiment appears to be spreading from long product prices to flat products in East Asia. However in Europe and North America, both HRC and plate remain depressed.
There also remain concerns over too-fast production ramp-ups and, if Chinese and other Asian new year holidays will dampen demand. China has been a key element in recent price increases.
CIS producers lifted their coil export prices by some $10-20/t fob for February, with sales mainly to buyers in China, Asia, Iran, and southern Europe. Current price levels for Russian coil are $400-450/t fob and for Ukrainian are $380-420/t; actual transaction prices exceeded expectations, say locals. Baosteel has raised its domestic price for March, and others in the region are also raising HRC and CRC prices.
Generally, billet prices have also remained steady or firmed slightly, whilst rebar has strengthened. In Turkey, the prompt billet market is even described as “tight” - prices are up to $420/t fob ex-works. However, in Latin America, where the market remained stronger for longer than elsewhere, prices are slipping.
Globally most market players say demand is still weak. But there is a hope that an “Obama bounce” will strengthen both the financial position of steel buyers in OECD countries, as well the latter’s real economies.