Ukrainian News Agency reported that experts are forecasting that prices of metallurgical products will stabilize in October.

     Mr Viacheslav Popov, the head of the department of analysis of products on the ferrous metallurgy market at the metallurgical division of the Derzhzovnishinform state information analysis center said that "Stabilization of prices of metallurgical products can be expected not before the middle of October. The fall is presently continuing and, for example, offer prices of USD 660 to USD 680 per tonne have already been registered for billets on the market."

     He said that the type of fast dynamics that was observed in the first half of the year will not be observed after stabilization of prices. He added that "The growth tendency will continue until the Christmas holidays. After that, the situation will depend on numerous factors, including economic activities in general, the prices of raw materials and energy resources in the new year."

     Mr Viacheslav said that increases in the prices of iron ore are expected in the new marketing year, but the increase will not be as dynamic as it is in 2008.

     Mr Dmytro Khoroshun a senior analyst at the Sokrat investment and financial group, the fall in the prices of metallurgical products is nearing its end, and that this indicated by the increase in the prices of futures for square billets on the London Stock Exchange and the expected acceleration of the construction market in the Middle East after the end of Ramadan. He said that "I think that the fall of prices will end in September and it may start rising in October."

     Mr Khoroshun said that a return to July's price peak is unlikely and there are no grounds for the expected price increase to continue for as long as the one that ended in June. He said that "In my opinion, it is premature to consider the market of metallurgical products as a rising one rather than a cyclical one."

     Mr Khoroshun said many aspects of price formation in the near future will depend on the dynamics of Chinese export of metallurgical products.

    Mr Ivan Kharchuk an analyst with the Dragon Capital investment company, the fall of the prices of metallurgical products could continue for another 2 to 6 weeks before prices stabilize. He said that "Export prices will fall to USD 700 to USD 800 per ton of square reinforcing steel."

     He added that it is unrealistic to expect prices to return to the June levels in the near future because there is a tendency toward a fall in prices on all major metallurgical markets, and its effect is not yet over.