Since early October, Russian steel producer Severstal has been placing offers to the Turkish market at $730/mt CFR FO Diliskelesi port for hot rolled coil (HRC) and at $840/mt CFR FO Diliskelesi port for cold rolled coil (CRC). While it is thought that these prices are unlikely to gain acceptance in the Turkish market, the price idea of Turkish mills is far below these levels, when import duties and additional costs are involved. Other Russian steel producers MMK and NLMK are offering HRC to the export market in the price range of $650-660/mt FOB.
It is reported that in Ukraine flat steel demand is significantly low, with the local flat steel market continuing to witness sluggish activity. It is heard that some Turkish mills have received HRC offers from Ukraine at $620-630/mt CFR, while Turkish buyers anticipate further price declines in these offers.
Since import offers given from CIS producers have in general been found to be on the high side by Turkish buyers, certain reductions have been applied by the CIS suppliers. Nevertheless, some market players think that transactions at lower prices are also possible.
As the unstable global economy continues to affect the steel markets negatively, a revival in world steel demand in the short term and increased positive movement in the steel markets are not expected for the time being.