Prices for HRC in the CIS increased by $ 100 per ton

Export of hot-rolled coils to the CIS countries is possible only from one Ukrainian manufacturer for March shipments and from one Russian manufacturer for April shipments. Two other Russian suppliers either supply the EU only from the Baltic or have no quotas until April, which they are not yet considering, market sources say.

HRC prices in the CIS are up $ 100 per tonne compared to last month and now range from $ 615-625 per tonne in the Black Sea, depending on volumes and origin. Ukrainian offers to Turkey are $ 635-645 per tonne depending on coil size and production plant, and $ 645 per tonne to Egypt. Meanwhile, Russian raw materials for the April loading from the Urals combine cost $ 640 per ton in all directions.

According to traders, these prices will be accepted by buyers in the face of a catastrophic shortage of materials in almost every corner of the globe. Sources note that factories in each exporting region prioritize domestic markets, leaving traditional importers tied to rolls.

Demand in Europe is growing at a rapid pace, and HRC prices in the US are rising to a level that will allow it to be imported despite a 25% import duty, if any, traders note. As in Europe, some end-users in the US are forced to cut back or cease production altogether as stocks are not available after a long absence from the market.

Some observers, they said, expect Section 232 measures to be lifted due to these shortcomings as soon as possible.

Availability of cold rolled coil is low, “… if possible,” traders say, and this shortage is pushing demand and prices for HRCs even higher. Traders say there is no price, but offers from Turkish producers are reaching $ 900 per ton.

“The reason we are doing very little again today is the opposite of what it was just a couple of months ago – too much demand but no supply and this will probably continue for months,” jokes the seasoned trader. :]

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