Export quotations for flat section from CIS slightly reduce at the beginning of September
By the beginning of September many Russian and Ukrainian producers of flat section have sold their September’s materials. Like in August the suppliers couldn’t have avoided a slight reduction in the prices while selling their last batches.
The value of the Ukrainian hot-rolled metal while concluding separate contracts for delivery to Turkey and the Persian Gulf countries has reduced to $535-545 t/FOB compared to $550-555 t/FOB in the middle of August. Russian companies have sold their last batches of hot-rolled metal mainly for $550-650 t/FOB, though the official quotations could have made $570-580 t/FOB. At the end of August cold-rolled metal made in Russia and the Ukraine was exported at $620-645 t/FOB and commercial thick-sheet steel was offered to the Turkish clients at $560-570 t/FOB.
Traders say, at the end of August the demand for flat section at the main sales markets was not high. The Middle East still hasn’t restored its market after Ramadan, though it has ended more than two weeks ago. At the same time, the consumers in the Persian Gulf countries report they have obtained a lot of proposals from Chinese exporters quoting the hot rolls at the rate of $575-585 t/CFR.
At the end of August,the Turkish domestic market became slightly weaker. The local companies had to reduce the prices of their products, though they counted on an increase at the beginning of the autumn. The economic slump in Europe at the main Turkish export branches reduced the demand for metal and the situation is not going to change in the near future. Actually, the Turkish companies can purchase hot-rolled metal and thick-sheet steel from CIS, but at low prices which don’t exceed $560-570 and $580-585 t/CFR respectively.
The demand for steel products in Europe remains weak and the majority of the buyers prefer local products with minimal delivery terms. In the second half of August,the Ukrainian and Russian companies offered hot-rolled metal to Europe at the rate of $600-615 per ton CFR/DAP (approximately 480-490 EUR per ton), having slightly increased the dollar quotations due to the increase of the euro exchange rate, however, at the end of the month several proposals were made proceeding from $580 or less than 465 EUR t/DAP.
European specialists consider, the abolition of the quotas for delivery of Russian rolled metal to EU after Russia’s entering the WTO won’t considerably affect the export volumes, at least in the next 2-3 years. The necessity of European companies in the steel products is not that high, the prices are low and regional metallurgists can now file antidumping lawsuits against their Russian competitors. However, the effect can be exactly more noticeable for hot rolled metal. This year MMK exhausted its quota for delivery of these products to EU in July and now its activities are concentrated on European direction again.
The negotiations between Russian metallurgists and American authorities concerning the terms of deliveries of Russian hot-rolled metal to the USA have resulted in nothing. The validity period of the previous agreement, in accordance with which the antidumping duties were not taken due to limitation of the delivery volumes and maintaining of minimal prices, has expired and the new one hasn’t been concluded yet, though it must be signed by October 1. Previously American producers were complaining about the deliveries of cheap hot-rolled metal of Severstal to the USA.
Now the exporters of CIS sheet products have taken a break and are getting prepared to enter the market with the October products in the middle of September. The metallurgists hope that the demand for flat section in Europe and the Middle East will increase, thus the prices can become higher than in September. However, this growth won’t be considerable anyway: no boom should be expected taking in consideration the current state of the world economy.
Source: http://www.rusmet.ru/news.php?act=show_news_item&id=60763&sign=i
Translated by Alexandra Utyasheva
