As raw material quotations are rising, export prices for CIS plate continue to trend up. They have increased by around $10-65/t (depending on producer) over the past month. At the same time, some suppliers have successfully sold January production and are already offering February output. Moreover, market players forecast the market will stay in a bullish mood as raw material expenses will be only growing in the near future. Furthermore, higher railway tariffs in Russia (by 8%) to come into effect in January will also drag export prices for Russian products up.
Reportedly, Metinvest International S.A. previously closed January order book for the material of Ilyich and Azovstal and has already sold part of February production from Ilyich. In particular, the latest offers of plate from the producer have ranged $650-660/t FOB Odessa for the Middle East and North Africa and $660-670/t FOB Odessa/$710-720/t DAP – for Europe. A company source says prices for Azovstal material have exceeded these figures by an average of $20-40/t. Nevertheless, the supplier may revise prices for plate of these plants by $20-25/t upwards after the holidays.
Besides, inquiries for the material have been recently reported from Eastern and Southern Europe, Middle East and Latin America.
However, not all the exporters have been selling successfully. For example, DMZ opened sales of January production just in mid-December, quoting it to the Middle East and North Africa at $620/t FOB Mariupol, $20-30/t up from prices for December rolling. However, market sources report bids coming at $600-610/t FOB, though without deals.
To European region, Eastern and Central Europe in particular, the supplier is quoting plate at EUR 490-500/t ($644-657/t) DAP, by an average of EUR 40/t higher than a month ago. Due to currently fluctuations, the increase in US dollar terms has narrowed to $32/t instead of $52/t.
Regarding Russian producers, they have tried to reflect higher raw material cost in their offers but not all of them have done it successfully. Thus, January rolling of Severstal has gained $65/t. But supply was tight and the company’s order book has been full by now. Meanwhile, Asha SW also attempted to push through a $45/t increase for January production setting prices at $615/t FCA a week ago. However, it has backed down later and lowered its offers to $588/t FCA ($15-20/t higher than a month ago). – source: www.metalexpert-group.com