Most CIS flats exporters keep strengthening their position. However, only Russian suppliers have announced official June prices, while Ukrainian ones continue to study the market situation and very often voice just nominal levels. Nevertheless, export prices for CIS products have generally grown by $10-20/t from last week, and suppliers will probably try to drive offers up further next week.
At the same time, only steel traders from South America and Europe have raised imports somewhat. As preparation works for the World Championship 2014 and the Olympic Games 2016 are underway in Brazil, demand for import flats is only getting stronger since it is priced by $150-160/t lower than local ones. Southern European buyers start purchasing June output from Russia, willing to restock before the traditional summer holidays. Like at the beginning of the month, Russian flats suppliers are still seeing moderate demand in the Iranian market. At the same time, SE Asian customers are uninterested in CIS material now mainly due to tough competition with Chinese sellers.
In this situation, Russia’s MMK, which just announced its price idea a week ago, has released the official prices for June this week. While at the beginning of May the steelmaker dared to hike prices for HRC to $720/t FOB Novorossiysk and for CR flats – to $840/t FOB Novorossiysk to the countries where there are no import quotas, the official quotations for the above products have settled at the levels by an average of $5-10/t lower. Moreover, market players report the producer’s CRC can be bought at $820/t FOB Novorossiysk.
Sellers of flats from MMK offer HR flats to Europe by EUR 5-15/t higher than a month ago, though having cut prices for CR steel by about EUR 5-10/t.
Export prices for HRC from MMK have grown to Iran by $10/t over the past two weeks, to $720/t C&F Anzali with payment by Iranian L/C (about $680/t FOB Astrakhan), but the supplier has granted $10 discount while making a deal.
June rolling of HRC from MMK is available to SE Asia at $735/t FOB Vladivostok, but no deals are reported so far. In particular, market operators report an offer of the material to Vietnam at $765-770/t C&F.
Russia''s Severstal, in turn, has moved quotations of June production of HRC upwards by an average of $15-20/t in few steps over the past week. So, HRC are quoted to Europe at $715/t FOB St. Petersburg, but the producer plans to reach $720/t FOB level soon. The similar material is offered to the countries, where there are no import quotas, at $700/t FOB St. Petersburg against $680-685/t last week.
Ukrainian steelmakers stay away from the market so far. They plan to release new prices by next week. Yet, Zaporizhstal has already voiced a $20/t rise compared to transaction prices for May output, steel traders say. HRC to Southern Europe are reportedly priced at $670/t FOB ($655/t CPT) Odessa, while Middle Eastern and North African buyers can book the material at $655/t FOB ($640/t CPT) Odessa.
Ukraine’s Ilyich makes no offers now, but the supplier is likely to follow the uptrend too.
( Source: www.metalexpert-group.com )