Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has raised its March production hot rolled coil (HRC) offer prices for the Middle East and Europe by $20-25/mt as compared to February production prices. Thus, MMK's HRC offers for the Middle East are now standing at the level of $595-605/mt FOB, while its HRC offers for Europe are at €465-470/mt ($628-635/mt) FOB. Meanwhile, the producer's offers to Eastern Europe are at €470-480/mt FOB ($635-648/mt). This higher price to Eastern Europe is caused by higher costs of transportation.
Overall, on the back of rising expenses, the producer had been forced to raise its prices for finished steel and decrease production volumes at the same time. Amid overstocking and the unstable economic climate, buyers are focused on concluding small volume purchases to meet their immediate needs.
€1 = $1.35