The market prices for various steel products continued to climb up at Black Sea last week. The main drivers are production costs and limited market supply volumes.
It is reported that for certain markets quotation already appear to be too high and the question is if the buyers will accept such levels.
It is seen that steel billet prices, which have been climbing for quite some time, have almost reached the last high seen in April 2010. They are up by about USD 150 per tonne as compared to year opening.
It is reported that steel billet price added another USD 10 per tonne to USD 20 per tonne this week at Black Sea. As per report, now most offers are in the range USD 580 per tonne to USD 600 per tonne FOB Black Sea.
There is a lack of information regarding finished longs, but with noticed quotations for rebars USD 590 per tonne to USD 610 per tonne and USD 600 per tonne to USD 630 per tonne for WR the reaction on the latest semis segment trends seems to be delayed.
It is reported that the Ukrainian mills are asking for USD 600 per tonne to USD 620 per tonne FOB Black Sea for HRC the January production. But some deals for Middle East were reported at lower level of about USD 590 per tonne FOB Odessa. The last offers for the Russian HRC with shipment from the Black Sea ports are reported at USD 640 per tonne FOB Novorossiysk.
HR prices at Black Sea continued to firm up last week as both Ukrainian and Russian steel mills increased their export offers on the back of good order book for current period. It is seen that HR prices are up by about USD 120 per tonne as compared to January 1st 2010, but are still down by about another USD 100 per tonne as compared to last high on April 30th 2010. This reflects the volatility in HR prices with a band of about USD 200 per tonne and the scope of further increase in coming days.