Seasonal factors have started to have a negative impact on end-user demand for flats in Russia, as was expected. However, local mills report their sales volumes have been sufficient and that price levels have been satisfactory, taking into account limited supply due to series of maintenance works.
According to sources, major mills are currently offering $475-486/mt (RUB 43,500-44,500/mt) CPT Moscow for November production HRC. HR sheet prices are at $469-480/mt (RUB 43,000-44,000/mt) CPT, SteelOrbis has learned. “The demand is so-so but the supply is much less since Severstal, NLMK and Temirtau are under maintenance,” a market player said.
In addition, Russian mills remain active in exports, which again puts some pressure on local buyers in terms of restocking. Severstal continues to trade its December production at $495-510/mt FOB for small and $510-520/mt FOB for big coil, to southern EU countries specifically. MMK has finished the sales of November production HRC and is getting ready to announce December sales at around $495-505/mt FOB. Similar levels are expected for NLMK for exports for the same month of production. However, some Turkish market players assume the workable levels may be $5-10/mt lower than that, SteelOrbis has learned.
US dollar-based prices do not include 20 percent VAT.
$1 = RUB 76.37
