Russia’s Severstal, which has been enjoying lively hot rolled coil (HRC) demand in the EU, has recently sold out its remaining volume of January production for export. Moreover, the company has managed to achieve a $20-25/mt price increase compared to the transaction levels at the end of last week.
Severstal has recently traded a total of 40,000 mt of big HR coils to several clients in the northern EU at $670-675/mt FOB Baltic Sea. The previous offers were set at $660/mt FOB, while the small deals last week were closed at $650/mt FOB. Along with the sufficient demand coming from Europe, Severstal has also been benefitting from the increased strength of the euro against the US dollar (at €1 = $1.21 now).
The total export HRC volume of Severstal for January production is estimated at close to 170,000 mt. Currently, the supplier is going to concentrate on its sales to local customers, SteelOrbis understands.