CIS exporters of longs have finally managed to stir up Middle Eastern and European buyers by spreading information about rapid increase in scrap prices and to start selling their January production. At the same time, suppliers at Caspian and Far Eastern ports stay in a wait-and-see mood, as they reasonably believe their offers at the levels they quote to other destinations will be unworkable in Iran and Asia. Currently, Syria, Lebanon and UAE are showing the strongest demand for CIS rebar and wire rod, thus ensuring steady growth of FOB-prices at ports of the Black Sea ($5-20/t up w-o-w). As a result, CIS rebar and wire rod is currently quoted at $620-630/t FOB and $630-640/t FOB, respectively. The top end of the rebar price range is in line with BMZ transaction prices. BMZ has successfully closed sales of January rebar rolling at prices $10/t above the levels announced on December 7. As for the activity of CIS exporters in Europe, Metinvest International S.A. has reportedly concluded contracts for January rolling of wire rod with Romanian buyers at $635-640/t DAP, market players report. After that, the supplier has raised its offers to $655/t DAP, thus indicating that there is no more material available for this destination. Prices for ArcelorMittal Kryvyi Rih''s rebar and wire rod to Romania have remained unchanged over the week – EUR 485/t ($640/t) DAP and EUR 495/t ($653/t) DAP. All euro prices have been converted into dollar ones at the exchange rate EUR 1= $1.32. However, the material is still considered overpriced. The steelmaker''s wire rod has been reportedly changing hands at EUR 480-485/t ($634-640/t) DAP, by EUR 10-15/t ($13-19/t) below the official levels.
(Source: www.metalexpert-group.com)