Ex-CIS HRC prices expected to decline

After the increased volume of ex-CIS HRC export activity observed over the past several months, activity has dropped to more usual levels as restocking processes have slowed down. Market players believe that ex-CIS HRC export prices may recede by $10-15/mt. However, there are some factors which give some support to suppliers to maintain their prices. Ukrainian steel producer Zaporizhstal's export volume of HRC will fall considerably cut due to significant maintenance works in April and will be partly substituted by products from Ilyich Iron and Steel Works. Metinvest has entered the market by quoting April output HRC at $565-575/mt FOB main Ukrainian ports.
 
At the same time, Russian steelmaker Magnitogorsk Iron & Steel Works (MMK) is maintaining prices for HRC at March offer levels, which were at $595-605/mt FOB to the Middle East and $628-635/mt FOB to Europe, despite the negative market situation caused by strong inflows of cheaper Chinese materials and decreasing prices for iron ore.