Russia-based Severstal, one of the largest hot rolled coil (HRC) producers and exporters in the country, has been facing price decreases for some of its foreign outlets. The key reason is the weakening of the euro against the dollar and increasing freight rates. However, lower demand from some buyers has also contributed to the price decrease.
In particular, Severstal’s HRC workable price for the southern region of the EU has dropped to $820/mt FOB Baltic region, while around two weeks ago the price levels were standing at $890-900/mt FOB. The producer’s prices for the northern part of the EU, however, have remained relatively stable at $940-960/mt FOB, taking into account earlier announced sizeable discounts. In the meantime, Severstal is down to $780/mt FOB for third countries, including the MENA region, while around a week ago the price level was at $795-820/mt FOB.
It is worth mentioning that Severstal remains active in the slab market, aiming to sell 70,000-80,000 mt for November production due to scheduled maintenance at both its hot rolling lines. The workable price level for Severstal’s slabs in the EU has decreased by $40/mt over the past month to $660/mt FOB Baltic Sea.
