A slowdown has been observed in the prices of the CIS flats producers. In addition, prices have also dropped in Turkey and southern Europe, where the markets are currently calm. On the other hand, plate prices are following a strong contrary trend, thus continuing their two weeks of upward movement.
Ukrainian steelmaker Ilyich production hot rolled coils are being offered at $570-575/mt CFR Turkey for late June shipments. However, we see that the end-users in the market are on hold despite these prices. Zaporizhstal, another Ukrainian steelmaker, were offering hot rolled coils at $605/mt CFR Turkey for June shipments. On the other hand, cold rolled coils ex-same mill were being offered at $685/mt CFR Turkey, also for June shipments. However, Zaporizhstal production hot rolled coils have been sold to Turkey at $590-600/mt CFR for June shipments, while cold rolled coils ex-same mill have been sold to Turkey at $660/mt CFR, also for June shipments. Moreover, the producer's April quota allocated for sales to Turkey has been fully utilized.
Russian steelmaker MMK was offering hot rolled coils at $660/mt CFR Turkey for June shipments, while the producer was offering cold rolled coils at $715/mt CFR Turkey, also for June shipments. The mill's offers for Turkey have maintained the levels of the previous month. However, MMK production hot rolled coils have been sold to Turkey at $630-635/mt CFR level. Another Russian steelmaker is offering hot rolled coils at $620-625/mt DAF Poland for May shipments.
The hot rolled coil price in the local Italian market, which was at around €520/mt, excluding VAT in previous weeks, has this week retreated to a level of €500/mt, excluding VAT. The calmness observed in the Italian market for the last few weeks is expected to continue during the week ahead. Moreover, if the market remains calm in the coming weeks, we may even see a price drop of €10-15/mt. Libyan origin hot rolled coils are being offered at €450/mt CFR Italy for May shipment.
Hot rolled coils ex-Kremikovtzi mill of Bulgaria are being offered at $605-610/mt CFR Turkey for June shipments. In previous weeks, the offers were ranging from $630/mt to $635/mt CFR Turkey. Following Erdemir's discount of $50/mt for its materials in stock, the price of Bulgarian origin materials has declined in the Turkish market.
Shipbuilding plates ex-Alchevsk mill of Ukraine are being offered at $740-745/mt CFR Turkey for June shipments, while St 37 plates ex-same mill are being offered at $730/mt CFR Turkey, also for June shipments. On the other hand, Donetsk, another Ukrainian mill, is offering shipbuilding plates at $690/mt CFR Turkey for June shipments, while it is offering St 37 plates at $655-660/mt CFR Turkey, again for June shipments. Shipbuilding plates ex-Ilyich mill of Ukraine are being offered at $725-745/mt CFR Turkey for June shipments. On the other hand, St 37 plates ex-same mill are being offered at $730/mt CFR Turkey, also for June shipments. The only exception to the declining flat rolled product prices in Turkey, as well as in Europe, is the price of plate, which is following a more stable trend with some rises. Since the supply-demand situation with regard to the plate market has not reached equilibrium yet, plate prices are not expected to decline in the short run.
For the near future, it is matter of concern toward which direction the supply-demand equilibrium in the flats market will tilt. However, we may expect the direction of the flats market to be clarified with the new prices to be announced by the CIS mills.