The recently announced price levels in the European flats market have started to gain acceptance. Moreover, if the US begins to purchase from the CIS, the producers in that region will be able to maintain their strength in the export markets, apart from their strong domestic situation. In the Turkish market, it seems that the recent price hikes announced by Erdemir will have a positive effect on the market. On the other hand, it seems that the latest developments in China will have a serious effect on the international markets.
Ukrainian steelmaker Zaporizhstal is offering hot rolled coils at $610-615/mt CFR Turkey for May shipments. Meanwhile, cold rolled coils ex-same mill are being offered at $675/mt CFR Turkey, also for May shipments.
Russian steelmaker MMK production hot rolled coils are being offered at $660/mt CFR Turkey for May shipments, while cold rolled coils ex-same mill are being offered at $715/mt CFR Turkey, again for May shipments.
It is said that end-users in Italy have slowed down their purchases following the rise in prices in the local Italian market. However, it is also reported that this slowdown is not expected to last long and that prices may increase next week. The market level in Italy for Iranian origin hot rolled coils is €520/mt FOT.
Iranian origin hot rolled coils are being offered for export to Italy at €470-475/mt FOB for June shipment. Meanwhile, Libyan origin hot rolled coils are being offered for export to Italy at €480-485/mt FOB Libya for June shipment.
The price reductions in China have drawn the attention of all markets. In recent weeks, the unexpected snowfalls in northern China have negatively affected the local market. Moreover, the uncertainty regarding the export tax rebate issue is having a serious impact on trade activities. Once this issue is clarified, both the Chinese local market and the other markets closely interested in developments in China will breathe a collective sigh of relief.