CIS suppliers push up HRC export offers

SteelOrbis has learned from market sources that CIS exporters of hot rolled coil (HRC) are following the current upward pricing trend initiated by European suppliers.
 
In particular, Russian steel producer Magnitogorsk Iron and Steel Works (MMK) is offering January production HRC to southern Europe at €435-440/mt ($561-568/mt) FOB Novorossiysk and to the Middle East (except Iran) at $530-540/mt FOB, both are €15/mt ($19/mt) higher than offers given last month.
 
On the other hand, at the beginning of last week Ukrainian mining and steel producing group Metinvest officially entered the market offering January production HRC from its two assets, Ilyich Iron & Steel Works and Zaporizhstal, at around $530/mt FOB Ukrainian port, while at the weekend the price level was increased by $10/mt to $540/mt FOB for both Europe and the Middle East.
 
A company representative from Metinvest told SteelOrbis that the price increase is supported by the necessity of buyers to restock ahead of the coming Christmas and New Year holidays, as well as by the higher quotations of European producers, which are transforming into a solid price-increase policy of flat suppliers in key markets, and the lack of aggressive Chinese export offers. The CIS suppliers, in particular Metinvest group, have successfully closed sales for December production and this also supports Metinvest's confidence in the market's ability to accept higher prices, said the representative.
 
€1 = $1.29