Russian flats producers remain focused more on domestic sales, where they have decent demand, though the trend in the market is somewhat speculative, mills admit. Still, in the domestic market the prices are better compared to export opportunities and also overseas sales remain connected with sanctions-related difficulties.
Recently, local flats prices in Russia have been revised upwards by RUB 2,500/mt to RUB 59,500/mt CPT for hot rolled sheet by RUB 5,800/mt to RUB 67,000/mt CPT for cold rolled sheet. As a result, taking into account the currency fluctuations, the US dollar price equivalent for the materials decreased by $10/mt for HR sheets to $680/mt CPT while the CR sheet offers have increased by $20/mt to $765/mt CPT. Some market players, however, report they have received around RUB 60,0000/mt ($685/mt) CPT from one of the mills for HRS.
Overall, it is reported that restocking in the domestic Russian market is at decent levels now, though it remains partly speculative. Some sellers reportedly have limited volumes for March production due to previous overbooking. Particularly, a certain deficit is seen in the cold rolled segment, hence the price increase.
In the export segment, on one side, Russian mills are still under pressure from international sanctions, which affect their business and result in lower prices demanded by buyers. One of the suppliers, according to sources, is targeting $700-710/mt CFR Turkey, another one has been voicing its targets at up to $720/mt CFR. Taking into account freight rates, the ex-Russia FOB export offers for HRC are currently evaluated at around $680-690/mt in the Black Sea region and at around $620-630/mt in the Baltic Sea region. Along with Turkey, the suppliers are also trying to evaluate other destinations, such as MENA and Asia.
In the slab segment, offers from Russia vary in a rather wide range since the workable price highly depends on the destination and on how deeply the supplier is affected by the sanctions. In Turkey, one of the Russian mills offered $600/mt CFR this week while another seems to be targeting around $610-620/mt CFR. The FOB level for Turkey is at around $570-580/mt from the Black Sea region. However, in offers to Europe, according to sources, the levels of $610-650/mt FOB are discussed, depending on the volume, the buyer and the steel grade.
