Prices to keep decreasing in June-July

摘要

Metinvest-SMC has sold the bulk of April production at previous prices.At the end of the month, the producer announced a 2% decrease in Mayprices to stay competitive amid a possible drop in import quotations.Export market slowed much down in April, so CIS material prices droppedby $15-20/t to $495-500/t FOB Black Sea amid weaker HRC demand inTurkey and EU. Even despite a decrease in prices for Metinvest’s HR flatsof May production, domestic prices remain $30-35/t above export quo-tations, with the normal being some $20/t. According to Metal Expert’sforecast, export prices for HRC will decrease by another $20-25.t in Mayas consumption in key outlets is unlikely to improve. Besides, pressurefrom Chinese exporters will increase as stimulus effect expected to beshort-lived finally runs out in China. In June-July, the pace of decreasewill slow down to $5-10/t per month. Overall, the global market environ-ment will stay largely unfavourable throughout the forecast period.