Export market for CIS finished longs has been calm this week. The major market participants – buyers from the Middle East – have left the market for holidays in mid-November. Currently, only Far Eastern buyers have been active over the week. Nevertheless, the suppliers remain optimistic as they have already sold most of their December production. Mills are planning to raise their prices further, citing short longs supply as well as an expected rise in scrap prices. However, most traders are expecting the prices to at least stabilize, as end-users show slack demand for the material.
Finished longs are currently offered from the Black Sea ports at $590-600/t FOB against $580-610/t FOB in the first half of the month. The latest bookings of December production of rebar and wire rod from Metinvest International S.A. have been made at $585-595/t FOB, unchanged w-o-w. Moreover, a company's source says, it has succeeded in selling its wire rod at $600/t FOB. However, market operators believe the material is overpriced and only bookings of small batches have been made, if they have been made at all.
ArcelorMittal Kryvyi Rih has already filled its December order book and the last batches of finished longs have been sold at $580-590/t FOB. Besides, the producer priced its material to Iran at $600-610/t FOB (by $20/t higher than to other destinations) in the first half of November, hoping for more profitable contracts. However, Iranian buyers refused to accept the new prices, and, consequently, no deals were made. Thus, in an attempt to keep the sales steady and to compete with the Turkish material, the supplier has already started offering its January production of rebar at $590/t FOB, traders say.
Also, Petrovsky's December production of 80-200 mm UPN beam and 70-90x5 mm equal angle is reportedly quoted to the Middle East at $635-645/t FOB. However, the prices are unworkable and no deals have been reported so far.
As for Europe, Metinvest International S.A., having booked some amount of Makeevka SW's December wire rod to Romania and Poland at $580/t DAF, closed the sales later at $605/t DAF. In case of deferred payment, ArcelorMittal Kriviy Rih quoted its rebar to Romania at EUR 425-430/t ($582-589/t) DAF and wire rod – at EUR 430-440/t ($589-603/t) DAF. Hereinafter prices are given at the exchange rate EUR 1= $1.37. However, in case of immediate payment, the material was changing hands at prices by EUR 15-20/t lower. The Bulgarian distributor of ArcelorMittal Kriviy Rih’s material was offering rebar and wire rod to be delivered to port before January 15 at EUR 435/t ($596) Ismail and EUR 440/t ($603/t) FOB Ismail respectively in the first half of November. However, this week the supplier has adjusted its wire rod prices by EUR 20/t ($27/t) up, to EUR 460/t ($630/t) FOB Ismail. ArcelorMittal Kryvyi Rih’s December order book is already full. The producer's rebar and wire rod was reportedly offered to Italy at about EUR 430/t ($589/t) FOB and EUR 440/t ($603/t) FOB, respectively. However, no deals have been reported.
Russian suppliers from the Caspian Sea ports have been out of the market for two weeks so far and are planning to come back with offers of December production after the holidays. Demand for finished products is extremely slack in Iran and it is unlikely to recover soon. Thus, the suppliers may have problems selling the material there at higher prices. However, limited supply of the finished longs is supposed to support the rise in prices.
The Russian material has enjoyed firmer demand in SE Asia lately; however it is purchased mostly in relatively small batches. Russian suppliers have raised prices for December production of wire rod to $605-610/t FOB ($630/t C&F), by $10-15/t up m-o-m, and are currently selling the material at these prices.