After having increased their flat steel export offers in previous weeks, the CIS flat steel producers are expected to issue unchanged or slightly higher export offers in September.
In August, Russian steelmakers Novolipetsk Steel (NLMK) and Magnitogorsk Iron and Steel Works (MMK) were offering hot rolled coil (HRC) to the Turkish market at $750/mt CFR, while the HRC offers of Severstal were at $760-775/mt CFR, depending on the order volume. In the meantime, Russian steel producers were offering cold rolled coil (CRC) to Turkey at the price range of $850-870/mt CFR.
On the other hand, Ukrainian HRC offers to Turkey have increased by approximately $20-30/mt in August, reaching $720-725/mt CFR. In line with anticipations for better demand in the Turkish flat steel market in September, new offers are predicted to remain stable or slightly increase.
On the other hand, Ukrainian HRC offers to Turkey have increased by approximately $15-20/mt in August as compared to July, reaching $720-725/mt CFR. In the meantime, Ukrainian HRC offers to Bulgaria stand at $725-730/mt CFR.
Since domestic HRC prices in the Turkish market have remained firm despite the low demand, the above-mentioned increased offers have succeeded in gaining acceptance in the Turkish market with some discounts in the conclusion phase of transactions.
As the summer holidays and Ramadan holiday ends with the month of August, flat steel demand in Turkey is expected to revive by the second week of September.