CIS exporters of longs still face low demand for their products. There is some buying interest in wire rod in some markets, while sales of rebar are complicated. Middle Eastern and European customers are inactive now on the back of the current downward trend, and wait till suppliers make considerable cuts. The latter, in turn, are not ready to step back so far.
Currently, only finished longs of March production from Ukraine’s ArcelorMittal Kryvyi Rih are being offered for export. Sellers from the Caspian and Far Eastern ports are still standing aside because they have scant volumes to export due to strong demand for longs in Russia. At the time, it is forecast that the trend will finally reverse in mid March owing to seasonally higher demand for construction steel, as well as growing raw material costs.
However, prices have not changed much in the Azov-Black Sea basin over the past week. ArcelorMittal Kryvyi Rih keeps its offers stable, willing to step back no more. Turkish exporters also do not give up and continue offering rebar at $655-665/t FOB (+$5/t to lower end of the price range) and wire rod – at $670-685/t FOB ($5/t up). Noteworthy, the current quotations of Turkish material remain very close to those of Ukrainian products, which prevents the local seller from sharp moves. At the same time, have been reported about a deal for rebar and wire rod (in small coils) from ArcelorMittal Kryvyi Rih has been made at about $650/t FOB.
Ukrainian products are in no demand in Europe either due to extremely low buying activity in domestic markets. For example, prices for rebar and wire rod from ArcelorMittal Kryvyi Rih to Italy are unworkable, as customers' bids are by at least EUR 20/t lower. The producer’s material to Bulgaria is priced at last-week levels. However, EU consumers do not purchase Ukrainian products even despite EUR 5-10/t discounts.
Moreover, Moldova SW is planning to resume production of longs in mid March and to determine final prices next week.
As previously reported, Metinvest International S.A. has already sold March output of its plants and thus has been staying away from the market since mid February.
(Source: www.metalexpert-group.com )