CIS-based hot rolled coil (HRC) producers have maintained strong positions on exports for March shipments as there is some considerable shortage of allocation, at least from some sellers. Business activity, however, has been moderate.
Ukraine’s Metinvest is in the market with around $480/mt FOB for small coils. The supplier’s offers to Turkey remain at $495/mt CFR. No transactions have been reported yet, but deals are expected as the number of HRC offers to Turkey is currently limited with Russia being practically out of the market. In the UAE market, Metinvest’s price is standing at $515-520/mt CFR levels with some deals reportedly closed. Moreover, Metinvest is targeting to strengthen its positions in the UAE though the sales of HRC from its modernized hot rolling line, SteelOrbis has learned.
Russian suppliers are barely present in the export markets these days. MMK is not offering any flat steel product due to maintenance which is expected to last for a while. As a result, there is a certain shortage in the local HRC market in Russia to the benefit of other HRC producers. “There is good demand nowadays in Russia and other CIS countries,” a representative of one of the mills said. As a result, NLMK is still not widely offering HRC for exports, the supplier’s allocation for March production is expected to be significantly limited.
Ex-Baltic Sea offers have moved up by $5/mt over the past week and the seller is testing the market with $480-485/mt FOB for March production. Europe is mainly targeted while buyers from the Middle East might not find the offers workable due to higher transportation costs compared to offers from the Black Sea, SteelOrbis understands.
