Russia’s Severstal, which is traditionally focused on hot rolled coil (HRC) exports to the European market, has almost closed April production sales amid high demand, but also due to limited allocation.
According to sources, Severstal’s most recent HRC deals to Europe, for around 30,000 mt of April production, have been transacted at $770-790/mt FOB Baltic Sea and at up to $800/mt FOB in some transactions. Previously, the company had traded around 50,000 mt at $765-770/mt FOB, as SteelOrbis reported last week.
With the mentioned deals, Severstal has almost finished April production exports, though some volumes may be still taken out from the local market or from alternative destinations once prices are advantageous. The company has a limited allocation for April production taking into account the scheduled two-week maintenance at mill 2800, aimed at plate quality improvement. The same mill produces feedstock for mill 1700, capable of 2 million mt of HRC production per year, and so both mills will be stopped simultaneously, SteelOrbis has learned.