CIS flat steel producers’ HRC offers increase in May

Russian and Ukrainian flat steel producers, who have already filled or are about to fill their order books for their June production hot rolled coil (HRC), have increased their quotations in May compared to the previous month. Having cut their HRC offers in April due to slack demand, these producers have increased their prices by $10-15/mt in May on the back of the revival of demand and the strengthening of the euro versus the US dollar.
 
Towards the end of April, Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) had first increased its HRC offers to $700/mt FOB from $680/mt FOB, after which it started testing the level of $720/mt FOB in early May. MMK, which has generally sold HRC at $705-710/mt FOB Novorossiysk in May, is expected to start accepting orders for its July production.
 
In the meantime, another Russian steel producer Severstal initially reduced its June production HRC offers in May to $685/mt FOB St. Petersburg; however, the steelmaker has now pushed up its prices to $695/mt FOB St. Petersburg.
 
On the other hand, SteelOrbis has learned from market sources that Ukrainian steelmakers Ilyich Iron and Steel Works of Mariupol (Ilyich) and Zaporizhstal have been testing the market with HRC prices at $650-675/mt FOB.