Having their July order books still open, CIS flats exporters have been forced to reduce prices this week. A drop in flats domestic quotations in Turkey and North America has caused another price correction, which has aggravated the competition with local mills. Besides, buying activity in Southern Europe will not improve amid coming summer holidays. Yet, steady demand for Ukrainian material is seen in Eastern Europe, Bulgaria in particular, which has enabled traders not only to keep prices to these destinations from falling, but to pull them up a bit.
Thus, over the week Ukraine’s Zaporizhstal has been forced to make reductions to major steel traders, working with the mill directly, with 100% pre-payment, paring $5-10/t from initial prices. As a result, HRC are being offered at $685-690/t FOB ($670-675/t CPT) Odessa. Yet, some buyers are not ready to accept the above level and ask for $5/t discount.
Market players report Airol Metals AG has already sold out July volumes of HRC from Zaporizhstal allowed by the quota. Thus, deals with Turkish buyers have been closed at $685-690/t FOB Nikolayev ($710-715/t C&F). Besides, Bulgarian customers have purchased the above material at $730/t FOB Izmail, against $720/t FOB Izmail a week earlier.
At the same time some Ukrainian steel traders are still offering July output of HRC from Zaporizhstal at $720/t FOB Izmail.
Metinvest International S.A. is asking by $10-20/t lower than a week ago for July production of CR sheet, while HRC have been sold out two weeks ago. Nevertheless, market operators report some trading companies can buy some of July production of HRC from Ilyich directly from the mill at $690-695/t FOB Mariupol.
Russia’s MMK has failed to sell July production at prices announced a week earlier. Thus, quotations of the seller’s products have rolled back by $10/t over the same period. US buyers have reportedly purchased 20,000 t of HRC at $700/t FOB Novorossiysk.
( Source: www.metalexpert-group.com )