In the first half of June in the middle East market billet swing contracts for the supply of the July products. At the same time, producers from the CIS countries were able to limit the minimum concessions, and emerging in Turkey, the increase of scrap and long steel products is expected to lead at least to stabilization of quotations, and even a slight rise in their value during the second half of the current month.
The lowest price of finished products in June pointed out the Belarusian steel works – less than $480 per ton FOB. However, it was toreproduce the June production, and, with 100% prepayment. In July, the company stops for the reconstruction of continuous casting machine No. 2, which is scheduled to run again in December. Until that time, the DMZ suggests to refrain from the export of commodity products, using them on site for production.
Other producers of blanks entered into the July contracts, mainly at $485-490 / t FOB, and some companies put up the new proposals at the rate of $490-495 / t FOB. Demand in the first half of June was very high. The Turkish company in the beginning of the month didn't show much activity, but then contracted a rather serious volumes. In addition, significant demand for semis from the CIS have been observed in countries such as Egypt and Saudi Arabia.
The Turkish semi-finished products in recent months use in foreign markets is much less significant demand due to the relatively high cost. According to the Turkish Statistical Institute, in the first quarter of the current year the volume of export of billets were, on average, 250 thousand tons per month in April – has just 133 thousand tons In particular, almost stopped the supply of Turkish products to Iran. In early June, Turkish companies reduced export prices to $505-515 / t FOB, but the queries, for example, from North Africa were reported at $500-505 / t FOB. Now, when in Turkey a bit more expensive scrap metal, obviously, workers will not go on new concessions.
In Turkey, the demand for semi-finished products continues to be limited due to the relatively low level of activity in the construction industry. Domestic prices in mid-June was about $510-525 per ton EXW, and it increased slightly in dollar terms due to the appreciation of the local currency against the dollar. However, while there is no indication that the Turkish mini-mills, which this year shifted from the procurement of scrap metal semi-finished products, returned to the previous scheme of providing raw materials.
In the countries of South-East Asia the demand for billets is low due to the outbreak of the rainy season and availability of Chinese finished steel, which is sometimes sold cheaper than fast food. Besides, almost all the suppliers of blanks in the countries of the region are active in sales and compete with each other by undercutting the prices.
Russian companies, in late may and early June suspended transactions resumed trading July products, offering her about $510-515 / t CFR. Japanese and Vietnamese billet is quoted at $520-525 / t CFR in these prices we have to focus and Korean companies, although some of them continue to expose the proposal is based to $530 / t CFR.
According to analysts, the "bottom" in the Asian market has not yet been reached, so that the workpiece until the end of June can still be a little cheaper. The main hope lay providers on the rise in prices of iron ore, which is expected to put an end to the continuous decline in Chinese long products.
 
Victor Tarnavsky
Rusmet.ru