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CIS longs export prices hold, mills push for more increases - 27 March 2012

CIS rebar and wire rod prices
December 2011 - April 2012, FOB $/t

©SBB 2012

 

Dec 11

Jan 12

Feb 12

Mar 12

Apr 12*

Rebar

 610 - 640 

 620 - 640 

 630 - 645 

 650 - 660 

 650 - 660 

Wire Rod

 640 - 660 

 640 - 670 

 650 - 670 

 670 - 680 

 680 - 700 

* SBB forecast, except announced surcharges

Prices of wire rod and rebar from Ukraine and Belarus have increased again following their February rebound. Wire rod (both mesh and drawing quality) has increased from $660-670/tonne fob Black Sea in late-February to concluded levels of $680-685/t and offers of up to $695/t fob Black Sea in the last week. Rebar prices have risen from $640-645/t to $655-660/t fob Black Sea in the same comparison, market sources tell Platts Steel Business Briefing.

The bulk of rod supply is coming from Ukraine; Moldova Steel Works (MMZ) is now producing, but selling to CIS destinations, traders said. Wire rod prices have been stable at $670-680/t fob Black Sea until last week, when a few deals were reported at $680-685/t, and offers have increased from Kryviy Ryh ArcelorMittal to $685-695/t fob Black Sea. "The mill probably has a few thousand tonnes of April production left and testing higher levels," a London-based trader said. Metinvest is understood to have sold out of April and some of May allocations already, and is not in the market.

Byelorussian Steel Works (BMZ) is reported to have sold 40,000t of rebar at $640/t fob Black Sea with 100% prepayment plus size extras, according to the London-based trader, equivalent to $655-660/t fob Black Sea with no prepayment, he said. There was also a sale to Israel of Ukrainian-origin rebar concluded at $700/t cfr, equivalent to $660-665/t fob Black/Azov Sea and a very competitive price, the trader added.

Traders and producers are bullish for April and, with the help of warm weather, increased amount of enquiries and continued cost pressure, mills are keen on continuing holding current price levels and perhaps increasing prices a little more. "April can be the star month so far, in terms of sales and prices; it looks like the Middle East and West Africa are interested in buying finished long products, although with Caspian Sea exports still problematic, the volumes that are sold there are much lower than traditional levels, traders said.

 

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