CIS-based hot rolled coil (HRC) producers have started the week with the expected upward revision of their export prices. The bullish mood in the Turkish market has supported them greatly and, moreover, the suppliers are likely to achieve high price levels in deals, sources estimate.
Turkish HRC producers are mainly in the market with $600/mt ex-works for predominantly March deliveries, while some are voicing even higher offers. According to sources, some deals have already been done at $590-600/mt ex-works for small and medium-sized volumes, while last week sales were reportedly done at $570-585/mt ex-works base. In the export segment, offers from Turkey are at $600-610/mt FOB and up to $620/mt FOB for March shipments.
The positive mood and rapid price increase in the Turkish market from the early November price levels have triggered a sharp uptrend in ex-CIS HRC offers, since the bids from Turkish buyers have been rising day by day. According to sources, Ukraine’s Metinvest has been voicing $575-580/mt CFR for small coils, while the bids for the mentioned products have increased from $540-545/mt CFR last week to around $560/mt CFR this week.
Russia’s MMK is sold out for January production and is heard to be voicing $555/mt FOB for February or around $570-575/mt CFR Turkey. NLMK is still waiting for the right moment to announce its offers for January production since its allocation is traditionally limited. It is worth mentioning that Severstal has managed to increase its deal prices to the EU by another $10/mt to $560/mt FOB for big coils. Overall the supplier has sold around 25,000 mt at $550-560/mt FOB for January production and has decided to take a pause for now.
