Autumn price peak for steel products in the ports of the Black Sea was made in August and Septemberexpert
During the seasonal recovery in trading activity , which began in June, August and September was actually completed. If a segment of a local long steel price peak was reached in mid- August, and the suppliers of the CIS managed to raise the price of 18-25 $ / mt , the exporters of flat products is calculated to extend upward movement in September , already having played 30-36 $ / mt with local bottom in June and July . Such information is contained in the monthly market survey were conducted by the State Enterprise ” Ukrpromvneshekspertiza ” ( SEA ).
In the first half of August in most of the regional markets of long products dominated the upward price trend, which, however, was significantly weaken compared with the dynamics of July. Expectations of further price increases linked , first of all , with the prospects of recovery in demand in the markets of the Middle East at the end of Ramadan. However, these expectations were overvalued , and in the absence of support from this factor prices have stabilized in the second half of the month even started to decline in some areas . In particular, the current price of the workpiece in the ports of the Black Sea in the range of 500-510 $ / mt fob. ” Additional weight -lowering factors were escalating problems in Syria and Egypt, as well as the substantial devaluation of the Turkish lira against the dollar , which affects the consumption of steel in the Middle East as a whole ,” – says Pavel Perkonos , deputy head of the analytical department of the SEA .
In the segment of flat products in August remained positive price trend in almost all regional markets. After a four-month decline from March to June, producers managed a second consecutive month to raise the level of transaction prices up to 520-560 $ / mt fob for the c / c coil. ” The main reasons for the surplus realized is as already held in some regions of recovery (particularly in the Middle East, Turkey ) and the expected strengthening of demand in the autumn in Europe”, – said Paul Perkonos.
According to forecasts of the SEA , the prices of long products will continue to decline in September and October, and in the segment of flat steel prices will reverse down in mid-September . The projected fall in the autumn months is due to seasonal reduction in consumption of products in the winter , as well as policy buyers to optimize warehouse before the end of the financial year. Will not contribute to a reduction in appreciation of rental contract prices for raw materials in the IV quarter of 2013.