Metallics markets adjust to loss of CIS supply

摘要

The CRU metallics price indicator (CRUmpi) fell in May, registering its sharpest m/m fall since June 2016 at 13.3 m/m to 451.5, as the steel price decline caused metallics buyers to lower their bids. The period of anxiety amongst metallics buyers in the aftermath of the invasion of Ukraine has come to a halt, as global supply chains for scrap and pig iron have swiftly readjusted over the past couple of months. This substitution of CIS-origin material, which was initially anticipated to be nearly insurmountable, has also been facilitated by reduced steel demand in some key regions. Furthermore, seasonal factors such as the Ramadan period in Turkey and some key Asian markets caused incremental weakening in imported scrap demand. This caused a rise in seaborne availability, a decline in price offers from large suppliers, and downside price pressures for ore based metallics.