Much to the relief of the billet and long product manufacturer price levels have started snaking up in December. Primarily an after effect of seasonal scrap shortage culminating in hike of USD 10 per tonne to USD 15 per tonne percolating to finished products.
Long product market which was at the forefront of global debt crisis headwinds lost a whopping USD 115 per tonne over the past 4 months. Endless agony seems to be passing over with the hike in input cost. Although the market is yet fathom the change with transaction yet to catch up but any reprieve is welcome.
A hike of USD 10 per tonne to USD 15 per tonne in billet prices triggered USD 10 per tonne increment in rebar and WRC prices.
On the other hand, misery deepens with each passing week in flat product market .Despite the export levels touching the lowest value since November 2010 agony remains excruciating. With most of the flat product market virtually shut out reeling under worst economic crisis only prophesies can rule the roost.
Even though the prices have touched unexpected lows there seems no light down the tunnel as the year draws to a close. However there is anticipation of enhanced buying and for stock replenishment in Europe and Middle East after the New Year vacation.
Since buying has been nearly absent in Europe for the past 6 months and Middle East has barely seen any semblance of buying in a year it might just be time for better turn of event in 2012.
FOB Black Sea
| Item | Grade | Size | Change |
| Billets | 3-5 sp/ps | 125-150 mm | +15 |
| Rebars | A300C-A500C | 12-32 mm | +10 |
| Wire rod | mesh | 5.5-6.5 mm | +10 |
| HRC | ST1-ST3 kp/sp/ps | 2-8 mm | -15 |
| HRC | ST1-ST3 kp/sp/ps (Russian) | 2-8 mm | -15 |
| Plates | A36 | 8-30 mm | -10 |
| CRC | 08 kp (Ukrainian origin) | 0.5-1.5 mm | -25 |
| CRC | Russian origin | 0.5-1.5 mm | 0 |
Change is on Dec 16th as compared to 9th Dec 2011
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