Export prices for hot-rolled and cold-rolled steel in the CIS continue to rise in line with the global upward trend, driven by rising raw material prices and a growing shortage of materials in Europe and Turkey.
Recent sales to Turkey have been concluded at US $ 690-700 /t for coils from one Russian and one Ukrainian supplier. Another Russian mill has no export funds due to satisfactory domestic demand and traditionally low export allocations. Another supplier from the Baltic states continues to serve the European market.
Offers with delivery across the Black Sea are now at a minimum of $ 700 per tonne when loaded in late March and April. Sources say the Baltic supplier completed sales to Europe last week at $ 700-730 per tonne and new offers this week are expected at $ 730-740 per tonne fob. Demand in southern Europe was at 620-630 € /t (753-766 USD), higher than last week’s figures of around 610-620 € /t CFR.
Turkish demand also continues to rise as domestic mills continue to ramp up supply and now only April production is available. But from now on, sales are expected to decline due to the upcoming holidays and extended lead times, allowing mills to take a step back in an ever-growing market.
Producer confidence is also underpinned by renewed demand in Asia, where prices are expected to surpass $ 700 /t this week.
There is little supply in the cold-rolled steel segment due to rapidly growing domestic demand in the CIS countries and was last heard at USD 780-790 per tonne in Turkey and USD 810-830 per tonne in Europe. Supply for April materials is expected to rise this week, but available volumes are extremely low, traders say. This allows suppliers to continue to increase their offerings.