The new week has begun with the market actively discussing information disclosed regarding low-priced ex-CIS hot rolled coil (HRC) sales and the impact they may have on global pricing. In addition, steel market players are trying to evaluate the consequences of the recently introduced export duties in Russia.
An HRC supplier from Ukraine sold a total of 40,000 mt to Turkey at the end of last week with the minimum price fixed at $975/mt CFR for small coils and around $1,005/mt CFR maximum for big coils. The negotiations had been started at around $1,000-1,020/mt CFR.
One Russian mill is considering $990/mt FOB, while another one has voiced $1,000/mt CFR Turkey, down $50/mt over the past week. “No one will now buy above $950-980/mt CFR for we are definitely heading down,” a source told SteelOrbis. In the meantime, domestic HRC prices in Turkey have decreased by $20/mt to $1,100/mt ex-works, although additional discounts should be on the table, buyers report.
Another factor is the widely discussed ex-CIS HRC sale to Vietnam at $855/mt CFR, with the freight estimated at around $30/mt as of today. “It should be a huge volume - we hear around 70,000-100,000 mt,” a trader said. In addition, a Russian mill is rumored as having sold HRC again at low levels to Latin America and North Africa without any details disclosed.
Baltic region-based Severstal has kept its offers at $1,100/mt FOB for southern Europe and at $1,240/mt FOB for northern Europe.