North African HRC market begins to liven up

In the Egyptian hot rolled coil (HRC) market, demand now seems better with improved transaction activity observed. Egyptian flat steel producer EZDK has increased its HRC export offers to $670/mt FOB for April shipments. In the meantime, it is reported that HRC demand in the Middle East and North Africa is currently better than demand in Europe, and thus EZDK is focusing on these livelier markets.
 
Currently, the Tunisian HRC market has improved as compared to December, with inventory levels somewhat lower than in previous weeks and demand getting stronger. In the meantime, HRC import offers to the Tunisian market are on the rise. Russian steel producer MMK is offering February production HRC to the Tunisian market at $690/mt CFR, compared to its offers at $640/mt CFR for January rolling. Following this price increase of $50/mt, Tunisian buyers state that they find the new offers to be on the high side and that they are expecting some discounts.