Although domestic demand for flat steel in Russia is still quite low due to the negative effects of high interest rates on many sectors, including investments and the construction sector, some Russian mills have attempted an increase in the hot rolled segment, mainly due to higher costs rather than positive sales prospects. At the same time, Russian producers are forced to remain active in exports, even though workable overseas prices are around $200/mt lower than the local prices that have been announced. “Exports are continuing and we are selling at relatively stable prices [compared to the previous round], but the ruble is strong and the margins from these prices have dropped again,” a market player commented to SteelOrbis.
In the local market, one of the main Russian flat steel producers has announced its offers for March production, increasing its HRC and HRS prices by RUB 500/mt ($5/mt) and RUB 1,000/mt ($10/mt), respectively. Coils are now available at RUB 59,500/mt ($630/mt) and sheets are at RUB 58,000/mt (around $615/mt), both on CPT basis. The latest HRS offers in the retail market have been reported at RUB 55,000-56,000/mt ex-warehouse or around $580-590/mt.
As for exports, all three Russian flats producers are present in the market but are offering material for different lead times. According to sources, the latest offers from one of the sanctioned mills stand at $440/mt Black Sea for February-March shipments, which translates to around $470-480/mt CFR MENA region and slightly higher. The supplier normally sells 30,000-40,000 mt of HRC for export per month. Another sanctioned Russian producer has recently closed its sales for March shipments with a total volume of up to 100,000 mt at around $430-435/mt FOB Baltic region or around $480/mt CFR MENA region. The non-sanctioned Russian HRC mill, according to sources, is getting ready to announce its offers for April shipments, with the expected level at around $500-510/mt CFR or around $480-485/mt FOB Black Sea, SteelOrbis has learned.
In the CRC segment, domestic coil and sheet offers have stabilized, most likely due to even lower chances of a revival of demand in the near term. One of the main mills is offering CRC at RUB 72,000/mt and sheets at RUB 73,000/mt or $760/mt and $770/mt CPT, respectively. Other producers are expected to announce around the same levels for March. As regards exports, CRC availability from Russia is scarce due to low workable prices and a normally larger share of domestic sales. According to sources, one of the sanctioned mills is indicatively offering at $540-560/mt FOB depending on the destination and for March shipments.
Local prices include 22 percent VAT.
$1 = RUB 77.5