Meanwhile, at Caspian ports buying has improved rapidly – Iranian customers started making deals amid low square billet stocks. However, this week only large trading companies and re-sellers have been offering the material, producers being out of the market. In particular, Kazakhstan’s Casting has not set prices for September output of square billet so far, and it is yet unknown if September material from Ural Steel will be exported.
For reference, Iranian re-sellers and stockists have to choose between the need to replenish stocks amid the forecast upturn in longs demand in September and the possibility of a speculative price growth related to limited supply. Square billet quotations may keep on growing in September if the situation stays the same. CIS square billet produced in the previous months has been reportedly offered this week at $705-715/t C&F Anzali paid by an Iranian letter of credit (some $675-685/t FOB Caspian Sea). At the same time, deals for small batches have been closed by $5-15/t lower.
In the Far East, quotations of Russian mills’ semi-product are still going up, although buying has slowed down a little in SE Asia in the middle of the month. Having suspended purchases, buyers hope to knock down square billet prices in the region and estimate how strong suppliers’ positions are. Nevertheless, another upturn in semis purchases is expected at the end of August, so it only depends on sellers’ tenacity if customers will manage to knock offers down or not.
However, international trading companies remain active and purchase the material in advance at higher prices. Amurmetal has reportedly held two tenders this week. September output of square billet has been sold at $670-680/t FOB (up $5/t from late July). But the price is rather an exception since Asian customers are not ready to pay more than $685/t C&F ($660-665/t FOB) for Russian material.
( Source: www.metalexpert-group.com )