The fact that the CIS steelmakers completed their sales after the announcement of their new prices brought an atmosphere of calm to the flats market. However, the new prices to be announced in the coming weeks may again revive the markets.
Ukrainian steel producer Ilyich production hot rolled coils are being offered at $545-550/mt CFR Turkey for July shipments. On the other hand, Zaporizhstal has completed its hot rolled coil sales at $560/mt CFR Turkey level and its cold rolled sales at $630/mt CFR Turkey level for July shipments.
Turning to Russia, MMK is offering hot rolled coils at $600/mt CFR Turkey for July shipments and cold rolled coils at $650/mt CFR Turkey.
The softening in the local Italian market continues with Iranian origin hot rolled coils at €495-500/mt FOT and the same material of Libyan origin at €485-490/mt FOT level.
Bulgarian steel mill Kremikovtzi has completed its hot rolled coil sales at $590-595/mt CIF FO Turkey for July shipments. Especially after the price announcement by Erdemir, demand in the Turkish flats market for Kremikovtzi material has increased, helping the producer complete its sales for July shipments.
Looking at flat products, we see that the strongest products in this market are still plates. Plate demand, which has maintained its strength since the beginning of the year, also affects the price of this product. The fact that demand surpasses supply will allow plate prices to maintain their high levels.
Russian steelmaker Severstal is expected to announce its new prices for September shipments next week. The new prices to be announced will be helpful in determining the direction of both the European and Turkish flats markets. It is expected that the calm observed this week will be broken with the new prices to be announced in the coming weeks and that the flats markets will see some revival of momentum.