Russia’s Severstal, which had earlier sold out its base allocation of HRC for export, has decided to give an additional 15,000-20,000 mt for October production HRC for overseas customers. The current offer price is $510/mt FOB Baltic Sea, SteelOrbis has learned. One of the reasons for this move is that local customers in Russia are reluctant to accept the mill’s offers at $478/mt (RUB 43,000/mt) CPT Moscow, while the price situation for exports has been more favorable. MMK, another key local Russian HRC producer, has been offering at $467/mt (RUB 42,000/mt) CPT, though some traders have reported higher levels from the mill.
In addition, Severstal has been focusing on slab sales since the allocation for October production has increased due to scheduled repair works at its rolling lines. As a result, Severstal has recently traded up to 70,000 mt of slabs in total at $425-435/mt FOB, all sold to the EU.
Domestic prices in local currency include 20 percent VAT.
$1 = RUB 75
