The export market for CIS flats becomes bullish. After a pick-up in demand for flats in late April CIS suppliers have started to raise prices. However, most producers still sit on sidelines and thoroughly study the market situation. They plan to announce new prices for June output after the May holidays. Only MMK (Russia) actively tests foreign markets at the moment, raising prices every week.
Last week the supplier quoted its HRC at $700/t FOB Novorossiysk and by now its offers have increased to $720/t FOB in several stages. MMK's June production of CRC is available at $830/t FOB Novorossiysk now.
Ukraine's Zaporizhstal has not yet started offering June output of flats, but market operators report that the company considers raising export prices by $20/t on average. For reference, the last deals on the producer's HRC with Middle Eastern and North African buyers were made at $635/t FOB ($620/t CPT) Odessa.
Besides, Zaporizhstal will accept fewer orders in June, as in April the supplier reportedly took more orders than it can service for May (by some 30,000 t). As a result, delivery time has been prolonged to June 30 for some contracts.
Metinvest International S.A., having sold HRC from Ilyich to Turkey at minimal levels in late April (at about $625-630/t FOB), has increased them by $20/t to this destination in early May, taking advantage of general improvement in buying activity. To other destinations (the Middle East, North Africa, the EU) HRC from Ilyich are still available at $645-650/t FOB Mariupol, same as two weeks ago. At the same time the seller has decided to take a break to study the situation carefully.
( Source: www.metalexpert-group.com )