The CIS flat steel producers are not inclined to lower their price levels, despite low domestic demand.
Russian and Ukrainian flat steel producers have kept their prices for their August production almost at the same levels as compared to their prices for July production. SteelOrbis has learned from market sources that flat steel demand in Ukraine has slowed down due to the summer holiday. However, slow demand seems to have remained insufficient for a price decline. Market sources report that hot rolled sheet (HRS) prices in the Ukrainian domestic market are now at about $750/mt ex-warehouse.
Russian flat steel offers to Turkey have softened by $5-10/mt as compared to last month, with hot rolled coil (HRC) prices reaching $730-740/mt CFR. In the meantime, it is also reported that Russian producers are offering HRC to the Middle East and North Africa at $690/mt FOB.
Ukrainian steelmakers Zaporizhstal and Ilyich Iron and Steel Works of Mariupol (Ilyich) are offering HRC to the Turkish market at $710/mt CFR. However, it is also learned that for large orders lower prices are also available in the market.