Ukrainian HRC export prices indicate declines

Ukrainian exporters' hot rolled coil (HRC) offers have showed a downward price correction of approximately $15/mt as compared to last month. In particular, major Ukrainian steel group Metinvest is quoting HRC produced by its Zaporizhstal and Ilyich facilities at around $550/mt CFR for southern Europe and at $565/mt DAP for eastern Europe. In particular, there have been some deals for the Bulgarian market concluded at $550/mt CFR, as a company representative has informed SteelOrbis.
 
Currently, the company's order books for May production HRC and cold rolled coil (CRC) are around 80 percent full. This is partly caused by the limited volume the company can supply to the market due to maintenance works at mill 1700 at Ilyich Iron and Steel Works of Mariupol and at mill 1680 at Zaporizhstal Iron and Steel Works. A company representative commented, "At the same time during the last few days we are witnessing a splash of demand for our May material with the volume of inquiries much higher than we can supply." Under these conditions at present the producer does not see any reasons for further price decreases for its products, although the market does not show any objective reasons for growth either. The situation will remain stable for some time, though a slow improvement in raw materials prices and demand may cause a slight natural positive price correction in the future.