Export hot rolled coil prices from the CIS have decreased over the past week, under pressure from weak buyer sentiment. The market is filled with various scenarios possible for the development of the situation in China, and so customers prefer to wait. However, some sources believe a rebound is possible as import scrap prices in Turkey have been trending up.
Russia’s allocation for exports remains limited as MMK is entering its maintenance period. However, as a result of the fire at its cold-rolling line, the mill might have some 40,000-60,000 mt of HRC per month. “We are waiting for them to offer once it is clear how the company is going to act and which part will be sold domestically,” a buyer said. NLMK’s allocation for March production is limited and the workable level is $475-480/mt FOB. Overall, the supplier is not in a rush as some medium-sized lots have been sold recently, to Turkey specifically at $490-495/mt CFR.
In the Baltic region, Severstal has been selling HRC for April shipments at $465-470/mt FOB to the south of the EU and at around $475-480/mt FOB to northern Europe. The total sales volume is around 50,000 mt. As a result, the producer has been forced to step down from the earlier fixed $490-495/mt FOB levels. “We are entering the period when everyone expects prices to weaken because of China, and therefore postpone purchases,” a source close to the company told SteelOrbis.
Ukraine’s Metinvest International S.A. has decreased its prices by around $5-10/mt over the week to around $470/mt FOB. Earlier this week, offers to Turkey were at $485/mt CFR, with around 30,000 mt sold at $480/mt CFR and slightly above, SteelOrbis has learned. The newly set offers are at $487-490/mt CFR for the remaining volume of around 20,000 mt.