The upward momentum for steel prices registered globally did not slow down last week. In the CIS, both billets and slab prices continue to recover and they are now at record levels.

BILLETS - A Russian mill sold a 10,000 tonne lot for February loading to a Turkish re- roller at $570/t fob. But this $585/t cfr price is already considered too low by some participants, as price increases appear to accelerate amid last-minute pre-Christmas purchasing.

Offers at $560-570/t fob were indicated on Monday this week and were largely ignored by buyers. But a new scrap deal into Turkey at over $430/t cfr and $40/t up on a week encouraged purchasing, and higher prices are expected imminently, with participants looking at offers at $600/t fob for January loading as relevant. These offers, however, are likely to be withdrawn and increased accordingly, they add.

Scrap price is driving billet price increases,while rebar prices still lag somewhat, although it is expected the first quarter will see a stronger rebar pricing, as government stimulus packages begin to be absorbed. Participants concede that should Chinese scrap import regulations be finalised by January, rebar will have a stronger still cost push, as scrap prices will rocket.