CIS HRC prices continue to slide
CIS hot rolled coil export prices continue to decrease as producers chase sales amidst ongoing descending sentiment, Kallanish learns from market participants.
Unlike two weeks ago, mills appear to be actively offering and cutting prices chasing sales, with some decreases clocking almost $40/tonne in 10 days. From around $850-860/t cfr Jebel Ali early last week, the price of Ukrainian small coils was heard at $820/t cfr for late January shipping. With alterntaive offers from an Asian supplier as low as $800/t cfr for the same grades, "CIS producers have to either cut their offers, or forget about this market," one trader says.
Ukrainian HRC offers in Turkey at $830-840/t cfr last week were concluded at $820-830/t cfr levels depending on size and grade, netting back to around $790-800/t fob. There were no other offers in Turkey of CIS material, but alternative Asian offers, again, were lower, at $810/t cfr for large volumes on Monday. Many buyers continue to push for the $800/t cfr, level, and with scrap prices sliding, the Turkish lira failing to recover from historically low levels and relatively high stocks, it may be achievable already this year, some sources suggest.
European sales are scarcer this month, as the region is adjusting to the forthcoming holidays season, high volumes of arrivals booked at higher prices, and sliding domestic HRC prices. Prices are ranging widely due to grades and volumes, but are said to be flat on the prior week, at around $920-940/t fob Baltic.
In Southeast Asia the only Russian supplier is still at $760/t cfr Vietnam, netting back to $730/t Russian Far East, but no interest has been shown by the buyers. Market participants expect more price reductions in the current month to follow the general downward sentiment that is gripping the market.
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Anonymous
Very good overview of the weekly steel market.
Anonymous