Export hot-rolled coil (HRC) allocation from the CIS is nowadays limited as most of the mills are already sold out for September production. Most of them have started to offer for October and increased the prices while some prefer to watch the situation. Pricing seems to be rather strong, supported by higher iron ore and limited supply. In addition, Turkey’s HRC offers remain firm and high.
Ukraine’s Metinvest has increased its offers for Turkey by $10-15/mt over the week to $500-505/mt CFR for small coils while the latest deals were closed at $495/mt CFR for decent lots, SteelOrbis has learned. Moreover, the supplier has allocated limited volume of big coils, which are offered to Turkey at $510-515/mt CFR. In addition, Metinvest has fixed $515-520/mt CFR in deals for small coils to Israel and some other North African countries.
MMK, according to sources, is targeting to sell the limited volume for September production at $480-485/mt FOB minimum. Offers to Turkey are still at $495-500/mt CFR for big coils. Some bids at slightly below $480/mt FOB have been reported as coming from the Israeli buyers. In addition, Egypt has been receiving offers at $505-515/mt CFR, which corresponds to $480-490/mt FOB. One of the Egyptian customers has placed a bid at $490/mt CFR, therefore no sales have been reported just yet.
Severstal has increased its HRC offer price to $485/mt FOB Baltic Sea versus $470-475/mt FOB at the end of last week. Moreover, the supplier has managed to fix the new level in a 10,000 mt sale to Europe. Severstal is in the market to sell for October production and is not in a rush to boost trade, trying to evaluate the market.
NLMK sold its September HRC allocation a while ago in deals to Turkey. The producer is taking its time to start sales for October, taking into account that the allocation for export will be again limited and HRC pricing seems to be rather firm for now, SteelOrbis understands.
