CIS billet prices firm up a little more on stronger demand
Prices of export billet from Russia and Ukraine have firmed up a little more this week, with Ukrainian billet testing $370-380/tonne fob Black Sea levels, and some Russian billet being offer at up to $390/t fob Black Sea, market sources tell Steel Business Briefing. Demand is said to be strengthening in the Mediterranean, along with strong Iranian interest, and the Persian Gulf is following suit. Although not translated into a major buying wave as yet, "re-rollers will have to start buying soon, to replenish their stocks," a local source says. Rebar price strengthening has been noted in the area, although the majority of sources still advise that this market is stagnant. Meanwhile, demand is said to be continuously strong in Asia, with Vietnam "ready to pay $430/t cfr," according to traders in Europe, along with Thailand. There is expected to be a shortage of billet available in the Far East of Russia, as Amurmetal . the scrap-based mill supplying billet and slab to the region has stopped production for the moment. July tonnages are now sold, but the buyers are said to be anxious to commit to buying August produced billet. There is a lot of demand at $360-370/t fob levels, SBB is told, but producers are looking for higher bids. "In a few weeks' time, when buyers are ready to buy, there could be a shortage of material for all," one source claims. However, another warns that, should producers give in to temptation to ramp up production (which some in Russia are already doing), they could crash the market out of its current equilibrium.
Prices of export billet from Russia and Ukraine have firmed up a little more this week, with Ukrainian billet testing $370-380/tonne fob Black Sea levels, and some Russian billet being offer at up to $390/t fob Black Sea, market sources tell Steel Business Briefing. Demand is said to be strengthening in the Mediterranean, along with strong Iranian interest, and the Persian Gulf is following suit. Although not translated into a major buying wave as yet, "re-rollers will have to start buying soon, to replenish their stocks," a local source says. Rebar price strengthening has been noted in the area, although the majority of sources still advise that this market is stagnant. Meanwhile, demand is said to be continuously strong in Asia, with Vietnam "ready to pay $430/t cfr," according to traders in Europe, along with Thailand. There is expected to be a shortage of billet available in the Far East of Russia, as Amurmetal . the scrap-based mill supplying billet and slab to the region has stopped production for the moment. July tonnages are now sold, but the buyers are said to be anxious to commit to buying August produced billet. There is a lot of demand at $360-370/t fob levels, SBB is told, but producers are looking for higher bids. "In a few weeks' time, when buyers are ready to buy, there could be a shortage of material for all," one source claims. However, another warns that, should producers give in to temptation to ramp up production (which some in Russia are already doing), they could crash the market out of its current equilibrium.
Steel prices soar on Shanghai Futures Exchange
Steel prices on the Shanghai Futures Exchange reached their highest point since trading began in March, boosted by Baosteel lifting July ex-works prices and the iron ore settlement between Vale and Nippon Steel/Posco. September rebar contracts closed at RMB 3,878/tone ($567/t) on 11 June, compared with RMB 3,808/t on the previous day. Closing price for September wire rod contracts climbed to RMB 3,768/t, from RMB 3,709/t the day before. Transactions on the same day also created new records at RMB 25.5bn for both rebar and wire rod contracts. Positive economic data released by the National Bureau of Statistics (NBS) also helped boost confidence in the futures market. According to NBS, China's urban fixed assets investment surged 32.97% year-on-year in the first five months to RMB 5.35 trillion, while real estate sector investment rose 6.8% to RMB 1.02 trillion. But spot markets in Shanghai have not reacted in accordance with the soaring futures market. Due to slowing transactions during the week, prices for 16-25mm HRB 335 and HRB 400 softened by RMB 50/t to RMB 3,460-3,470/t and RMB 3,520-3,550/t. The market has been expecting Shagang to reveal its new rebar and wire rod prices since 11 June, but the company decided to delay the announcement until 12 June. Market rumours suggest the mill will either retain its exisisting prices or increase them by around RMB 50/t.
Steel prices on the Shanghai Futures Exchange reached their highest point since trading began in March, boosted by Baosteel lifting July ex-works prices and the iron ore settlement between Vale and Nippon Steel/Posco. September rebar contracts closed at RMB 3,878/tone ($567/t) on 11 June, compared with RMB 3,808/t on the previous day. Closing price for September wire rod contracts climbed to RMB 3,768/t, from RMB 3,709/t the day before. Transactions on the same day also created new records at RMB 25.5bn for both rebar and wire rod contracts. Positive economic data released by the National Bureau of Statistics (NBS) also helped boost confidence in the futures market. According to NBS, China's urban fixed assets investment surged 32.97% year-on-year in the first five months to RMB 5.35 trillion, while real estate sector investment rose 6.8% to RMB 1.02 trillion. But spot markets in Shanghai have not reacted in accordance with the soaring futures market. Due to slowing transactions during the week, prices for 16-25mm HRB 335 and HRB 400 softened by RMB 50/t to RMB 3,460-3,470/t and RMB 3,520-3,550/t. The market has been expecting Shagang to reveal its new rebar and wire rod prices since 11 June, but the company decided to delay the announcement until 12 June. Market rumours suggest the mill will either retain its exisisting prices or increase them by around RMB 50/t.
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