CIS flats suppliers keep selling July output. Despite somewhat firmer demand in Turkey and UAE, buyers are not highly interested in purchasing HR flats there, refusing to accept the levels suppliers announced last week. At the same time, traders inform that demand for CR flats is rallying in the Middle East and Africa. However, no deals have been reported so far. Moreover, Iranian buyers have temporarily left the market due to considerable weakening of Iranian rial against US dollar. In turn, North American buyers refuse to purchase uncompetitive CIS material, preferring locally produced flats instead.
Under current conditions it has become difficult for Russian suppliers to keep prices at levels of early July. So they have had to cut their quotations to countries, where import quotas are not imposed, by $10-25/t. Market participants believe that after the recent drop in prices for Russian flats, Turkish buyers seem likely to book MMK's material, as they bid some $735/t C&F ($710-715/t FOB).
US-dollar denominated prices for MMK's material to Eastern Europe have fallen more substantially, because prices to this region are usually quoted in euro and US dollar has got stronger in the past week.
Another Russian supplier, Severstal will probably have to direct its material to Turkey and the Middle East too, as demand for its flats in South America has faded away, although it was quite robust last month.
NLMK reportedly sells July production of HRC to Turkey at $715-720/t FOB Novorossiysk ($735-740/t C&F), $25/t down from early June.
Ukraine's Zaporizhstal has announced an increase in prices for its July output to major traders by $25-30/t in mid-June, to $675-685/t CPT ($690-700/t FOB) Odessa, as expected. However, market participants believe that the supplier will have to cut quotations by $20/t at least, because the announced levels are evidently too high. Market players believe that foreign suppliers may accept the level of no more than $670-675/t FOB for HRC and $775-780/t FOB for CRC.
Having sold out Ilyich's HRC of July rolling, Metinvest International S.A. offers only its CRC. However, foreign suppliers refuse to accept initial prices and so the supplier continues to negotiate.
( Source: www.metalexpert-group.com )