Russian mills have announced new prices for flat products, increasing most of them while counting on a further seasonal improvement in the market. However, according to sources, the demand recovery has been slower than expected and only for some sectors. In the meantime, exports have remained challenging due to the negative global price situation while the current exchange rate of the Russian rouble against the US dollar is not favourable for Russian mills. The recent price drop seen in offers from China has aggravated the situation even more, impacting the workable price levels for Russian material.
Currently, according to market sources, domestic HRC and HRS prices from one of the main mills in Russia have settled at $598/mt (RUB 62,000/mt) and $613/mt (RUB 63,600/mt), respectively, both on CPT basis. While offers for coils have remained stable in the local currency and added around $8/mt over the past month due to exchange rate fluctuations, offers for sheets have increased by $13/mt (RUB 600/mt). In the CRC segment, offers were announced at $786/mt (RUB 81,500/mt) for coils and at $801/mt (RUB 83,000/mt) CPT for sheets, up by $26/mt (RUB 1,500/mt) over the past month. Other Russian mills are reportedly offering for May at similar levels. In the retail market, according to local sources, the price for HRS stands at an average of $713/mt (RUB 61,600/mt), with the CRS price at $957/mt (RUB 83,000/mt).
As for exports, according to sources, one of the mills has succeeded in trading around 50,000 mt of HRC to the MENA region at $490-500/mt CFR, which was before prices from China fell. Some sources, however, have reported deals at $485-487/mt CFR as well, particularly to Turkey. Another mill was aiming to sell at $520-525/mt CFR Turkey in the past week, up from $490-505/mt CFR closed in the previous round. However, following the ex-China price collapse, the workable price levels for Russian non-sanctioned material are now estimated by buyers at below $490/mt CFR. “Now some of them [Russian mills] might find it better to sell slabs since they cannot get the level of HRC prices which leaves room for a good margin and not disastrously lower than their domestic prices,” a trader told SteelOrbis. Currently, ex-China offers in Turkey are at $475-478/mt CFR, down around $20/mt over the past week and at $495-505/mt CFR Egypt, SteelOrbis has heard.
Prices in roubles include 20 percent VAT, the offers in US dollar do not include VAT.
$1 = RUB 86.4.