Ukraine’s Metinvest is currently offering HRC at around $510/mt CFR for small and $520/mt CFR for big coils, both to Turkey and both up by around $5-10/mt over the past week. The latest deals have been closed for small coils at $507/mt CFR to Turkey and at $520/mt CFR to North Africa. As a result, the current mill’s price is estimated at around $495-500/mt FOB and $500-505/mt FOB depending on the coil weight. Metinvest is in the market to sell for October production.
Russia’s MMK still has some September production HRC volumes to sell. Its offers to Turkey have been voiced at $515/mt CFR for big coils, with small volumes traded at $510/mt CFR this week or at around $495/mt FOB. However, one 10,000 mt bid from Turkey was rejected at $497/mt FOB, SteelOrbis has learned. In addition, MMK has been testing the Asian markets with offers at around $520/mt CFR Vietnam and bids coming at $510/mt CFR. Freight is estimated at around $15-20/mt by the market players.
Another Russian producer NLMK has traded some volumes to Turkey at slightly below $520/mt CFR for October production, market sources report, which corresponds to around $505/mt FOB. It is worth mentioning that the producer may give additional HRC export allocation for October, taking into account the recent fire at the mill’s pickling line. The fixing may take around one week, though some expect it to be extended to two weeks.
Russia-based Severstal is currently out of the market, being sold out for October production. The supplier has traded its initially planned HRC allocation at $500-515/mt FOB to the European market and has now taken a step back. However, the producer may allocate more HRC from its local market if the export price is advantageous enough.
