This week has brought new export offers of CIS flats. Russia's Severstal has returned to the market and MMK has announced its prices to Eastern Europe. But most CIS suppliers wait for demand from foreign consumers to improve. In particular, in the Middle East buyers from Saudi Arabia, Iran, Syria and Israel show demand for Russian material, but deals have been scarce so far. A pickup in demand is also expected in Turkey.
Meanwhile, Metinvest International S.A has already sold out July production of Ukrainian HRC from Ilyich and is deciding what to do next in the near future. The supplier may leave the market until the end of summer in view of the fact that some orders have left from previous months. Besides, the manufacturer intends to perform some repairs. In turn, Zaporizhstal is officially out of the market, but it will return soon and traders report there is a price idea for July production already.
At the same time, Severstal has started offering July production already and has made different adjustments to its export prices, depending on destination and type of flats. The supplier failed to fully implement the lift in prices for June output of HRC, so export quotations of July material to countries, where quotas on imports are not imposed, have remained unchanged. At the same time, prices for CRC have even added $10-20/t over the past month.
Offers of Severstal's flats to Iran, traditionally quoted in euro, have dropped somewhat. HR flats quotations have lost EUR 9/t (around $13/t, EUR 1 = $1.45) and CR flats – EUR 2/t ($3/t). Nevertheless, US-dollar quotations have increased by $7/t and $21/t respectively due to stronger euro.
Availability of July output to Eastern Europe is currently limited due to weak demand. Under current conditions the supplier offers HRC and CRC only to some buyers. Quotations of flats have increased by $26-27/t m-o-m taking into account currency fluctuations, while actually the rise has been only EUR 10/t ($15/t).
MMK announced July prices to the USA, Middle East and North Africa last week and has been keeping them steady so far. At the same time, its quotations of sheets and coils to Eastern Europe have increased by $19-40/t in a month taking into account currency fluctuations, with a lift in euro terms being EUR 5-20/t. Market participants report that at the beginning of the week Iranian buyers showed robust demand for HRC (July production) of the company and booked the material at around $760/t C&F Anzali Iranian L/C payment (some $720/t FOB Astrakhan).
In turn, Metinvest International S.A has sold HRC from Ilyich to Europe at $705/t FOB Odessa (July rolling) and to the Middle East (Syria, Jordan) – at $715/t FOB Odessa.
Market participants forecast offers of Zaporizhstal's July output of sheets and coils to major traders will rise by some $25-30/t m-o-m. HRC quotations are expected to reach $680-700/t FOB Odessa ($655-685/t CPT Odessa). Besides, availability of CR flats will be extremely limited due to high number of orders moved from June to July.
( Source: www.metalexpert-group.com )