CIS-based hot rolled coil (HRC) producers have been actively trading to various outlets over the past two weeks, which has resulted in some sizable volumes booked. As a result, most mills, the ones from Russia in particular, are more or less sold out for June production HRC and are targeting higher price levels for the remaining lots.
In the Black Sea region, Russia’s MMK has been targeting to sell at up to $365-370/mt FOB, up around $10-15/mt over the past week. Offers to Turkey have been reported at up to $380/mt CFR with minor discounts possible, while previously close to 40,000 mt were traded mainly at $365/mt CFR. At the end of last week, around 5,000 mt of HRC were sold by MMK to Egypt at $385/mt CFR, which corresponds to slightly below $365/mt FOB. In addition, the producer remains active in Asia. MMK sold 50,000 mt to China last week at $390/mt CFR or around $375/mt FOB Vladivostok. This week, the supplier targets sales at up to $400/mt CFR and is not under pressure since the main volumes allocated for June production have been already sold out, SteelOrbis understands.
Russia’s NLMK, according to sources, has been aiming to sell at a minimum of $375/mt FOB this week, up around $10-15/mt over the past week. In particular, offers to Turkey are at $390/mt CFR, versus $375-380/mt CFR and above in the most recent sales. According to sources, the supplier’s remaining allocation for June is a minor one.
Ukraine’s Metinvest remains active in negotiations within the Mediterranean region with its prices estimated at around $350-355/mt FOB for small coils and $365/mt FOB for big coils. In particular, offers to Turkey are at $365/mt CFR and $375-380/mt CFR, respectively, with limited lots traded this week. The levels are similar to the ones fixed last week, as SteelOrbis reported.
Baltic region-based Severstal has been actively selling HRC in the first half of May. Around 40,000-45,000 mt are planned for shipment to Turkey at $350/mt FOB, while the EU booked closed to 130,000 mt in total with deals sealed at $400-405/mt FOB for the northern EU and $360-370/mt FOB for the southern EU. By the end of the current week, the producer has decided to offer $360/mt FOB minimum for the south of the EU and the MENA region, while the price for northern Europe has remained at $400/mt FOB. In addition, Severstal is in negotiation with Asian buyers for a sizable lot with prices under discussion being close to $400/mt CFR.
