Press releases

CIS bar/rod export prices rebound, more increases coming - 24 February 2012

CIS rebar and wire rod export prices
November 2011 - March 2012, FOB $/t

©SBB 2012

 

Nov 11

Dec 11

Jan 12

Feb 12

Mar 12*

Rebar

 620 - 640 

 610 - 640 

 620 - 640 

 630 - 645 

 640 - 650 

Wire Rod (mesh quality)

 640 - 660 

 640 - 660 

 640 - 670 

 650 - 670 

 660 - 675 

* SBB forecast, except announced surcharges

Export prices of wire rod and rebar from Ukraine and Belorussia have rebounded after a January dip, although the recovery is slower than has been expected. Prices have strengthened on the back of strong Turkish demand and a moderate restocking elsewhere, and there are more price increases to come, market sources tell Steel Business Briefing.

Wire rod prices have gained from the absence of Moldova Steel Works (MMZ) which has been idle for the past two months (see separate article). Mesh-quality rod export prices have climbed back to the beginning of December levels and exceeded them somewhat, with offers and concluded deals around $660-670/tonne fob Black Sea for March production, depending on the mill, volume and destination.

Trading sources say the mills look bullish for April output, and anticipate further increases. The imminent start of the construction season in the CIS will mean less availability for export, but as the price increases are taking longer to become effective in Africa, that continent is expected to continue buying, creating a welcome tightness in the market, they say.

BMZ is said to have been offering 12-14mm rebar at $635/t fob Black Sea with 100% prepayment this week, and is likely to close by the end of the week, sources close to the mill say. Other rebar offers in the market are from ArcelorMittal Kryvyi Ryh at $640-645/t fob Black Sea, which is "quick to deliver, doesn't require prepayment and produces a wider range," traders say.

The sentiment continues to look bullish, on the back of construction season approaching and continuing cost pressure, SBB is told.

 

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