Russia-based hot rolled coil (HRC) exporters have been cautiously optimistic lately, taking into account that some of them have managed to realize slight price increases in their latest deals, to Turkey specifically. In addition, most of them are more or less sold out for May production and are voicing slightly higher indications for June. However, the uptrend is still considered to be a shaky one as end-user demand in the flats segment still leaves much to be desired.
Baltic region-based Severstal is offering at a minimum of $370/mt FOB for the southern EU and MENA markets, having sold sufficient lots earlier. The latest deals to Turkey for additional over 20,000 mt were closed at around $365/mt FOB, versus $350-360/mt FOB in the transactions done two weeks back. For the northern EU, Severstal is quoting $400-420/mt FOB. The producer is not expecting active business in the coming week, intending to wait for a clearer market picture for June sales.
On the Black Sea side, the HRC export indication is at $370/mt FOB and above depending on the mills’ positions. Russia’s NLMK, according to sources, has been selling the remaining HRC lots for May rolling at close to $375-380/mt FOB, up around $10/mt since early this month. In particular, some additional 15,000-20,000 mt were sold to Turkey at $385/mt CFR, buyers report, with the latest lots traded close to $395/mt CFR. MMK, another Russian HRC supplier, has closed May production sales and, according to some traders, is targeting $375-380/mt FOB for now. However, others report that $365/mt FOB and slightly below is still an achievable level for June production. Previously, the producer was selling to Turkey and North Africa mainly at $360/mt FOB.
Along with sizable lots sold to Southeast Asia previously, Turkey has become the key buyer of HRC from Russia in the Mediterranean region. According to SteelOrbis’ estimations, over the past two to three weeks Turkey has purchased at least 140,000 mt of ex-Russia HRC, mainly in the range of $380-395/mt CFR.
