Meanwhile, CIS billet suppliers at the Caspian ports have managed to raise their prices, which were decreasing steadily during the past month. Thus, quotations of March production have added $10/t from mid-February.
Sellers have been able to implement an increase due to stronger Iranian long product market: starting from late-February, domestic prices for rebar and wire rod have been going up after a long downturn period. This is due to the fact that the Iranian government has approved a new budget assuming heavy investments into construction segment. As a result, Iranian buyers, who stayed away from semis purchases for a long time, have resumed activity, thinking the prices have touched the bottom.
In particular, Kazakhstan’s Сasting, which tried hard to spur buying by making reductions, has succeeded in selling the rest of March billet at $590-595/t FOB (up $10/t in a week).
Distributors of Ural Steel have reportedly sold about 30,000 t of billet of March production at $620-625/t FOB this week. No offers of semis from REMZ have been reported.
In the Far Eastern region, CIS billet quotations have stayed stable due to limited supply. Moreover, suppliers have managed to increase transaction prices somewhat. Although most part of March semis has been booked by now, mills delay offering April material.
Traders say another Amurmetall''s tender for 10,000 t of billet was reportedly closed at $645/t FOB (up $5/t in a week). The seller has opened a new one, setting initial offers at $655/t FOB.
Evraz Holding has expectedly sold March production of billet (about 20,000 t) at 655-660/t FOB ($680/t C&F). However, this contract does not reflect the situation in the region, since the material was bought by a wire rod producer, while most Asian consumers are still not ready to accept levels above $650-670/t C&F (about $630-645/t FOB). The market is still seeing downward movement, which may be attributed to traders'' wish to buy at lowest prices.
(Source: www.metalexpert-group.com )