While the flats and raw material markets have been trending down this week, HRC importers in the Mediterranean region have specifically preferred to wait for a clearer picture. In the meantime, CIS-based HRC producers are not in a rush to provide sizeable discounts for now as their positions are supported by limited allocation.
Russia’s NLMK is still taking its time to announce solid offers for March production HRC to the export markets. The supplier, according to sources, will have less than the usual 50,000 mt to sell, and so it is not in a rush to offer. Players estimate that the company will be targeting to sell not below $485/mt FOB.
Severstal, another Russian producer, has sold out most of its March production HRC allocated for export. Most deals were closed to the north and west of the EU at $490/mt FOB Baltic Sea, while in some transactions the seller achieved $495/mt FOB, SteelOrbis has learned.
MMK is getting ready to enter its maintenance period and so it remains out of the export markets. “It is not yet clear, but certainly [the company will be back with offers] not before May,” a source said.
Ukraine’s Metinvest had sold part of its March rolling allocation earlier, with deals to Turkey closed at $490-495/mt CFR, with around $15/mt freight. Its sales to Jordan were closed at $490/mt FOB, while the most recent sales were realized to Africa’s sub-Saharan region at $490-500/mt FOB. The most recent information about Metinvest’s export offers is a bit contradictory. Turkish buyers report that the company’s HRC in coils of 18-22 mt has been on offer at $490/mt CFR this week. Other sources say that the indication for big coils for Egypt was voiced at $520-525/mt CFR. However, it is stated that Metinvest is going to officially enter the market for big coils with its April production.
