It is known that the CIS countries have increased their fullness thanks to the sales activity to China. However, with the reduction of demand in the local Chinese market, the CIS countries' HRC offers are now at the price levels of $370-390/mt FOB. Ex-Russia HRC offers to China have decreased compared to the price levels of a month ago. Accordingly, ex-Russia offers to China given by traders are currently at the price levels of $380-400/mt CFR China for March/April shipment. However, Chinese buyers are considering to buy at $360/mt CFR and below although the Chinese import activity is very slow for the time being.
Looking at the plate market in Ukraine, due to the tightness in the plate-using sectors such as machinery and shipbuilding, softening in plate prices are being observed at the moment. Price levels of the plate producers in Ukraine for common grade material are currently at the range of $450-520/mt FOB depending on producers. Meanwhile, the Ilyich production material is at the price level of $520/mt FOB, whereas the Donetsk production material is at $450/mt FOB. In addition, ready stock plates are being offered from Mauripol and Odessa ports due to the cancelled orders. These offers given by traders are at $450-480/mt FOB.
Looking at the southern Europe, the Ukrainian offers, which were at €350/mt CFR southern Europe ports in January, have decreased by €15-20/mt as of early March to the levels of €320-335/mt CFR. It cannot be said that offers to southern Europe are attractive. In general, the base prices of the southern European producers are at €345-400/mt ex-works, whereas it is reported that the deals are also at this range.
De-stocking process in southern Europe is still continuing. It is heard that the ex-stock material is being offered in the Italian ports at the price levels of €300-310/mt. Base prices of the Italian producers are at €350-400/mt ex-works. No change has this week been observed in Bulgaria, Romania and Greece as compared to last week.
It is a fact that as long as the de-stocking process will continue, it seems that the sluggishness in the southern European flats markets will also continue.
€1= US$1.25710