The latest price levels announced by the
CIS producers indicate that the supply-demand situation in the
flats market has reached a kind of equilibrium. Prices are in general close to the levels of the previous month.
Ukrainian steelmaker Ilyich
production hot rolled coils are being offered at $570-575/mt CFR
Turkey for late June shipments. However, there are also offers beginning from $580/mt CFR
Turkey level for spot materials. These offers for spot materials are open to bargain.
Zaporizhstal, another Ukrainian steelmaker, is offering hot rolled coils at $605/mt CFR
Turkey for June shipments. On the other hand, cold rolled coils ex-same mill are being offered at $685/mt CFR
Turkey, also for June shipments. However, it is heard that the sales are being concluded at lower prices.
Russian steelmaker
MMK is offering hot rolled coils at $660/mt CFR
Turkey for June shipments. Meanwhile, the producer is offering cold rolled coils at $715/mt CFR
Turkey, also for June shipments. The mill's offer levels for
Turkey have maintained the levels of the previous month.
The offer levels for Russian steelmaker
Severstal's flat rolled products for shipment to
Turkey are at $675/mt CFR for
HRC (big coil), at $665/mt CFR for
HRC (small coil), and at $745/mt CFR for
CRC. The offers are effective for early July shipments. Due to the strong domestic market conditions in
Russia, there is no official export destination for
Severstal materials to be produced in May for July shipments. However, the producer is open to bids from buyers.
Traders are also offering Egyptian mill Hadisolb
production hot rolled coils at $580/mt FOB for export to
Turkey. On the other hand, traders are offering EZDK -another Egyptian mill-
production hot rolled coils at $635-640/mt FOB, also for export to
Turkey. These prices may decline this week.
In the local Italian market, hot rolled coils are being offered at €520/mt, excluding VAT. The Italian market has been calm since last week. It seems that the prices announced by the
CIS mills will determine the direction of the local market in
Italy.
It is matter of concern how developments in
China will influence the global markets in the near future. The clarification of the export tax rebate issue may cause
trading levels to increase in the short run, as this cause of hesitancy in the market has now been removed. Another awaited development is the return to the market of the US mills. The US
flats market is still calm; however, the orders that will be given by US buyers to the
CIS mills will be effective in determining the market direction.