As expected, export quotations of HR flats ex CIS have resumed downward movement. Market operators report slack demand has wiped off all the suppliers’ attempts to reverse the downward trend – a week ago some producers tried to increase prices by $10-15/t, but now have to cut prices again. Besides, prices for August production may decline further, especially in view of the fact that Ukrainian sellers have not started offering August output yet.
HRC from MMK have lost on average $10-30/t over the past week. Thus, week-ago initial prices for August rolling of HRC to SE Asia were about $585/t fob, but now sellers are quoting the material already at $575/t fob Vladivostok. At the same time, some traders expect to buy the products at $570/t fob. In particular, the material from the mill is quoted to Vietnam at $610-615/t c&f. HRC of MMK from Black Sea ports are being offered at $560-590/t fob, against $575-590/t fob a week ago. Noteworthy, prices to Turkey and the Middle East are so far unchanged – $580-590/t fob. This is probably because suppliers hope that customers will strive to make purchases ahead of Ramadan. However, prices for the same material to Iran have fallen in the past week by $30/t, to $550/t fob ($570/t c&f Anzali).
Export prices for products from Severstal are also going down. Traders report HRC from the mill are quoted at $530-550/t fob St. Petersburg, against $ 550/t a week ago. In particular, offers of the material to Brazil are coming at $540/t fob (about $615-620/t c&f Manaus). Export prices for HRC to Indian buyers are about $530-540/t fob ($610-620/t c&f). At the same time, customers are bidding at $500/t fob ($580/t c&f).
Besides, market players report HRC from Kazakh producer ArcelorMittal Temirtau are available to Iranian buyers at $525/t fob Astrakhan (minus $5/t in a month).
(Source: www.metalexpert-group.com )