CIS bar/rod export markets are quiet as holidays loom

CIS bar/rod export markets are quiet as holidays loom
Wednesday, 15 July 2009


CIS export pricesApril - August 2009, FOB $/t
Rebar April 09 350-425
May 09 380-430
Jun 09 385-440
Jul 09 400-450
Aug 09 400-440

Wire Rod April 09 350-400
May 09 370-410
Jun 09 390-430
Jul 09 400-440
Aug 09 400-430


* SBB ForecastHaving livened up a little in late June/early July, CIS long product export prices are "drifting again", market sources tell Steel Business Briefing. Demand also appears to be dwindling, as quiet August is approaching with Ramadan in the Middle East and North Africa, and summer holidays in Europe.With Russia still not offering any long products for export, Black Sea rebar and rod market are being taken by Turkey and Ukraine. Byelorussia is also reported to be selling, mainly to North Africa this month, and Moldova is said to be exploring possibilities, having restarted production after three months' break, sources say.Although demand is described as waning, the opportunities after August may be better than anticipated, one producer says. Egypt is promising to regain strength, along with the Gulf region, North Africa and the rest of the Middle East. For wire rod, India, Korea and South-East Asia are already indicating their interest in importing from the CIS. "Too much money was ploughed into the economy in the H1 this year," one market observer explains. "These funds need to work – and the banks be bound to start crediting the construction industry, which will give an impetus for long products market growth," she says. She warns, along with others, that unrestrained production increases threaten to ruin the recovery.Prices are in the region of $400-440/tonne fob Black/Baltic Sea, depending on the origins and the destination. The sentiment that although it is slow now and will be for the next month or two, scrap prices are "unrelenting" and rebar and wire rod markets are likely to start picking up in the Autumn.

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