The HRC prices are set for an uncertain phase. The wind of change commenced in China when the collapse in domestic price levels by a whopping USD 120 per tonne over a period of 75 days set the tone for a price undercutting.
The impact was all pervasive from Ukraine and Russia to Europe and Middle East as mills were compelled to revise their offers to satiate buoyed buyers eager to postpone buying to eke out maximum reduction.
However in the last 10 days there has been alteration in dynamics as the price debacle in China has stemmed showing marginal correction by upto USD 10 per tonne. The earlier offers of USD 480-490 per tonne, CNF ,Indian port was more borne out of traders taking positions expecting the market to slide further. However the recent rally by steel market borne out of cost compulsions of mills rather than demand resurrection offers have surpassed the threshold of USD 500 per tonne touching USD 510- 515 per tonne , CNF , Indian port.
As a corollary to the above happenings the mills in Ukraine and Russia are in for a breather as the Chinese pressure eases. Mills are adequately booked for November and quoting levels of USD 480-500 per tonne , Fob , Black Sea or USD 540-560 per tonne , CNF , India and European ports. At the same time they are not averse to doling out handsome discount for big size parcel .It is reported that a major Russian supplier has booked a parcel of 30,000 mt at USD 500 per tonne CNF, Indian port recently setting the tone for another round of price cuts as winters sets in diverting volumes for export from domestic market in this region.
The prices seemed poised for certain turbulence as surplus availability from CIS and Ukrainian mills will pressurize the levels. On the other hand traders are likely to play foul with release of material at lower than market price to pressurize mills from pushing prices.
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(Sourced from www.steelprices-india.com)
Tuesday, October 27, 2009
HRC prices in for tumultuous phase
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