Russian flat steel producers have remained active in export destinations with their hot rolled coil (HRC) offers for at least three months now, selling quite large volumes, mainly to the MENA region and Turkey. The main reason is the slow domestic demand in Russia due to seasonal reasons, while the weak currency favors overseas sales. In the meantime, in the domestic market the prices have gone down for the first time in months given the limited demand and tighter competition.
Currently, ex-Russia material is in demand mainly in North Africa and Turkey, mainly since buyers have been hesitant for a while as regards booking large lots from China, not willing to bear the risks of March deliveries. As a result, Russian mills have recently closed export sales for December production and are now focused on January production sales. The most recent deals to Turkey for at least 50,000 mt of non-sanctioned material were closed at $530-535/mt CFR, SteelOrbis has reported, while the current indications are estimated at $10/mt higher. Non-sanctioned material is now offered to Turkey at $505-510/mt CFR, while freight from the Black Sea region is around $20-25/mt.
In North Africa, the most recent sales for decent quantities were closed at $510/mt CFR, with the further intention to increase offers to $520/mt CFR. Prior to that, a volume was also closed at $500/mt CFR. The freight for this destination is considered to be $50/mt in the winter period, SteelOrbis has learned.
In the local market, HRC prices in Russia have dropped by RUB 4,000/mt to RUB 61,000/mt CPT or $498/mt CPT, while hot rolled sheet prices have decreased by RUB 3,000/mt to RUB 65,000/mt CPT or $525/mt ex-works. According to sources, suppliers from neighboring Kazakhstan are selling coils to the local market in Russia at $482-490/mt (RUB 59,000-60,000/mt) delivered.