It seems like CIS flats market is becoming increasingly bullish. Further rise in quotations of raw materials and semis, as well as a burst of buying activity in almost all the markets of the world, has allowed distributors of Russian and Ukrainian mills' material to keep driving their prices for sheets and coils up. As a result, offers of February rolling of CIS material have added $30-90/t on average, depending on destination, type of product and the seller's optimism. Moreover, according to reports, most producers have sold out most of February production offered for export and are already getting ready for further increases.
Russian steelmaker Severstal has been the first to come back to the market after winter holidays, announcing an increase in its quotations by $30-60/t on average, depending on product type, in the first days of January. Moreover, market participants report that currently the supplier has almost sold out its February rolling already.
At the same time, offers of MMK’s February production of flats to the countries, shipments to which are not subject to quotas, have gained $45-65/t m-o-m. Quotations of HRC from MMK to Eastern, Central and Western Europe have added EUR 40-45/t over the past month. However, prices in the US dollar terms have increased much more on currency fluctuations – $59-71/t instead of $53-60/t.
The manufacturer has set its offers of HRC and CRC to Far East at about $720/t FOB Vladivostok and $835/t FOB respectively. However, these levels are likely just nominal, in view of more competitively priced material from regional suppliers (China in particular) available in the market.
NLMK has reportedly filled its February order book already and is offering March rolling of its HRC at $740/t FOB Novorossiysk.
A representative of Metinvest International S.A. reports February production of Ilyich HRC has been sold out already, too. The supplier says that this product was quoted at $680/t FOB Odessa just a few days ago, but the level of $700/t FOB Odessa has been confirmed by now, against $605-610/t FOB a month ago. To The Eastern European destination, the company has managed to fiz the prices at $705-710/t DAP.
At the same time, Zaporizhstal, wary of underselling their February production of flats, has not yet decided on prices for it, but is reportedly considering the possibility of lifting its export quotations by $60-80/t m-o-m on average. At the same time, the producer's February offering will be somewhat limited due to high number of orders reassigned from January to February.
(Source: www.metalexpert-group.com )