Steel market strives for a new price segment in 2014

Towards the end of 2014, the steel market is approaching some new lower price ranges. There are not many factors in favor of improving demand in the near future, and pressure from the Chinese continues. Steel producer prices are falling along with prices for scrap and semi-finished products, as a result of which the market is moving towards a new balance.

The situation in the CIS countries creates an unfavorable situation in the billet market. But other alternatives immediately emerge, such as China and Brazil with the sale of slabs. This is kind of a step against buying scrap metal. Chinese suppliers know and scrap metal sellers know that if there is a problem with supplying LPG billets, they adjust their positions accordingly.

At some point, Ukrainian billet suppliers tried to take advantage of the absence of other manufacturers. But then China came and influenced the market. As for Ukraine, now there is an understanding that in the near future the situation will normalize and supplies will resume on the market, creating a positive effect. Ukraine is an important supplier of metal because it is close to industrialized regions and it is very easy to deliver goods from here.

There is, of course, China. But with China, delivery times are under a big question mark, especially for reinforcing steel. Because the supply of valves is a very volatile business. However, attractive Chinese options are constantly surfacing and bringing the market to a new balance, while other manufacturers are losing ground in the rebar segment.