Ex-CIS flat steel offers continue to move downwards

Russian flat steel producers' export offer prices for their January production have showed some decreases as compared to their offers for December production last month.
 
Accordingly, Russian steel producers' hot rolled coil (HRC) export offers are currently standing at the price range of $570-580/mt FOB, while their cold rolled coil (CRC) offers are at $670-690/mt FOB. In the meantime, having been on a downward trend since last August, ex-Russia flat steel offers are predicted to switch to a slight upward trend by next week.
 
Russian steel producer Severstal is offering HRC to the Turkish market at $625-635/mt CFR, and its offers for CRC to Turkey are at $735/mt CFR, both for January rolling. Although Severstal's offers are found to be on the high side in the Turkish market, it is believed that Severstal may apply some discounts for received firm bids.
 
On the other hand, Ukrainian steelmakers' HRC export offers for January production are standing at $550-555/mt FOB. Market sources state that the general expectation in Ukraine is that offers will continue to move downwards slowly up to the end of this year. While Ukrainian HRC offers to Turkey are standing at $570-575/mt CFR, it is reported that some transactions have been concluded at this price range and that new offers will be issued in the coming days.