CIS scrap prices remain on downward track
World Steel News 31.10.2014
CIS scrap prices keep sliding in late October, as importers are insisting on discounts citing persisting negative trends in the finished steel market.
Only Ukrainian trader has managed to sign a contract with Turkish consumers at $302/t CFR Turkey this week, though the majority of suppliers say bids are mostly lower than $300/t CFR and reach $297/t CFR, against $303/t CFR a week ago. However, exporters have had to raise buying prices at ports by $4-8/t on the back of an increase in the domestic market.
A3 grade from Rostov-on-Don is estimated at $310-312/t CFR Turkey, against $315-317/t CFR a week ago. “However, breakeven point is still higher – $315/t CFR even despite sharp rouble devaluation against the US dollar. Current buying prices do not secure normal material inflow,” one of exporters said.
No deals have been reported in the Baltic region. With the latest sales from the UK to Turkey, Russian exporters estimate scrap at $325/t CFR Turkey, by $4/t down from the latest transaction. Nevertheless, suppliers have made use of the rouble devaluation and raised purchase prices at ports to increase scrap arrivals.
In the Far East, Russian suppliers have to accept buyers' bids – 25,000 t of A3 grade has been marketed to South Korea at $295/t CFR, unchanged from the last-week contract.
CIS scrap exporters will remain under pressure from buyers, though deals will be occasional, Metal Expert estimates.
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