By mid-September, hot rolled coil export offers by Russian producers were at around $710-720/mt FOB levels, on average. As no improvement has occured in the demand level and the market has remained weak in terms of activity, flat rolled steel prices have started to see some softening as of the end of September and early October.
Russian offers at an average of $690/mt FOB levels in recent weeks have declined as low as $670/mt FOB. Import offers given to Turkey are seen to be on a downward trend on CFR basis, while Russian producer Severstal is offering $730/mt CFR Diliskelesi for hot rolled coils and $840/mt CFR FO Diliskelesi for cold rolled.
The most recent hot rolled coil offer received from Ukraine is heard to have seen some discount on the level of $680/mt CFR; however, this offer still remains above the domestic price level when import duty and other costs are included. A downward movement is expected in the November offers to be made within this month. October offers by Ukrainian producers in the export markets were at $630-640/mt FOB levels.
Against the competitive offers from Europe, import offers from Russia and Ukraine are expected to see a further decrease. With this expectation, the market is reportedly remaining on hold, refraining from bookings as much as possible.