In the North African flat steel markets, despite reduced import flat steel offers, as well as low inventory levels, demand is still weak and buyers are only purchasing in order to meet their urgent needs - due to the political instability in the region.
In addition to the market uncertainty, falling flat steel prices have contributed to the postponement of purchases by buyers. SteelOrbis has learned that particularly steel pipe manufacturers, who use hot rolled coil (
HRC) as input material, consider that
HRC prices are still high, given the relatively low levels of pipe prices.
Russian flat steel producers' offers to the North African markets for
HRC stand at $750-760/mt CFR, while their cold rolled coil (
CRC) offers are at $860-870/mt CFR. In March, Russian offers had declined by $50/mt over the previous month, while in April ex-Russia flat steel offers have regressed by another $50/mt. Turkish
HRC offers to the North African markets stand at $770/mt CFR, while Spanish
HRC offers to the region have decreased by €20/mt ($29/mt) to the level of €570/mt ($826/mt) CFR.
Moroccan steelmaker Maghreb Steel has started to give offers after commencing production of
HRC. The Libyan flat rolled producer Libyan Iron and Steel Co. (LISCO) has not yet resumed production, due to the ongoing conflict in
Libya. In addition, according to unconfirmed reports reaching SteelOrbis, certain production units of LISCO have been damaged during the turmoil in the country. On the other hand, it is reported that
ArcelorMittal's Algeria-based subsidiary
ArcelorMittal Annaba will not return to the market until the end of the current month, due to ongoing maintenance works at its facilities.
As SteelOrbis previously reported, Egyptian flat steel producer
EZDK had increased its domestic
HRC prices by EGP 200/mt ($34/mt) to the level of EGP 4,200/mt ($704/mt) ex-works. It is also reported that
EZDK's
HRC export offers stand at $790/mt FOB. SteelOrbis has further learned from Egyptian market insiders that domestic buyers are not active in the market for import material.