Low bids impact Russian slab exporters
Russian Black Sea slab exporters have been compelled to reduce their prices in the midst of continued pressure from cheap flat steel offers from China and a general downtrend, sources inform Kallanish. Additionally, the Russian export market is experiencing its traditional lull during the period between the 1 and 9 May holidays in Russia.
The Russian rouble, however, has strengthened, reaching 78.61 per $1 last Friday according to Russia's central bank rates, compared to 80.25 a week earlier, making exports less attractive for Russian producers.
The current Kallanish assessment for Russian steel slab is $525-570/tonne fob Black Sea as of Friday, a drop of $15-20/t from the previous week's assessment of $540-590/t fob.
According to a trading source, Severstal and Evraz offered at $525-535/t fob in the Black Sea, while NLMK offered at $565-570/t fob.
One participant assessed the market price for Russian slab in Turkey to be no more than $570/t cfr Turkey, which corresponds to the most recent deal into that country.
According to the source, non-sanctioned producers may achieve better prices in the more marginal European market.
The lull is persisting in the finished steel segment, with suppliers' low bids not being acceptable for sellers.
Specifically, Russian hot rolled coil was assessed at $610-640/t fob Black Sea, while cold rolled coil remained at $700-740/t fob, both unchanged week-on-week due to the traditional lull between the Russian holidays.
Domestic mills' HRC prices in Russia were at $660-670/t delivered to buyers' yards in Russia’s Central region, without VAT, considering the exchange rate of 78.61 roubles to $1.
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Anonymous
Very good overview of the weekly steel market.
Anonymous