Severstal, one of the key Russia-based flat steel manufacturers, has almost sold out its July production tonnages, while it is still focused on European destinations. However, after months of rallying prices due to the limited allocation in the EU, Severstal has seen some rollback in bids since late May.
According to sources, Severstal is close to selling an overall 130,000 mt of the hot rolled coil (HRC) for July rolling after the latest deals closed at $1,220-1,280/mt FOB Baltic Sea. The lower end of the range corresponds mainly to western Europe and to some buyers’ bids from northern Europe. Earlier this week, the supplier’s lowest deal price was reported at $1,240/mt FOB. “Prices declined since some buyers have booked cheaper options from India and Asia overall and they do not want to book ahead with us since the price trend is unclear. Therefore, we need to either sell to more distant markets or provide discounts here,” a source told SteelOrbis.
Still, despite the recent discounts, Severstal’s HRC sales prices are the highest prices among the CIS-based mills. Ukraine is aiming to sell to Turkey at around $1,015-1,020/mt FOB, while the other Russian mills are taking their time to announce firm offers but report bids at around $1,010-1,015/mt FOB from Turkish buyers, SteelOrbis has learned.