Hot rolled coil (HRC) producers from Russia have been bullish in the export markets and some of them have succeeded in raising their sales prices, specifically due to the support from European buyers. Upward adjustments are also planned for the local market for May rolling, taking into account the seasonal demand improvement.
Russia’s Severstal has recently sold 10,000 mt in total of HRC for May production to the northern EU at $875-880/mt FOB Baltic Sea, up by $15-20/mt compared to the previous deals. “There is not enough local supply for everyone, while most buyers require small lots which Severstal can combine and supply not only by sea but also by railway,” a source told SteelOrbis.
According to sources, Russia’s NLMK has recently sold around 30,000-35,000 mt of HRC for May production to Turkey at $850/mt CFR, with estimated freight of around $20-25/mt. In the meantime, MMK is still in the market with $840-850/mt CFR official offers for May and is in negotiations with buyers.
In the local market in Russia, hot rolled sheet prices for April production are set at $802/mt (RUB 70,000/mt) CPT Moscow, while HRC is on offer at $791-802/mt (RUB 69,000-70,000/mt) CPT for the same month depending on the supplier. However, one mill has announced a preliminary increase in sheet prices for May production to $848/mt (RUB 74,000/mt) CPT, SteelOrbis has learned.
Local prices in RUB include 20 percent VAT, while prices in US dollars do not.
$1 = RUB 72.7