Exporters of hot rolled coils from CIS reduce the price

Hot rolled steel suppliers from Russia and Ukraine have succumbed to market pressure, selling their products at levels lower than those offered in the last week of March. They subsequently lowered the quotes accordingly for the new availability,

A Russian supplier from the Urals accepted bids at around US $ 505 per tonne for supplies across the Black Sea and called it a roll-rolling bid in May. The supplier has been pushed out of its traditional export market in Southeast Asia by the competitive supply of regional supplies and the ability of competitors to supply large tonnes. The plant sold several small batches of HRC to traders last week.

Another Russian manufacturer, with slightly higher quality HRC, sold to regular Turkish customers last week and therefore was not on the market last week. The supplier's new promotions in May have yet to be announced and are unlikely to be considered by buyers in a couple of weeks. That's when the processors will have more clarity about the dynamics of the domestic market and the strength of the lira, the sources say.

The producer, supplying mainly to Northern Europe, also cut offers to around $ 505-510 /tpa, in line with softening sentiment in the European flat steel market and exchange rate fluctuations.

Meanwhile, supply figures for Ukrainian-origin HRC were around $ 500 /tonne at the FOB level, with one supplier targeting the east, where large shipments were required. Bids, however, were well below sellers' expectations. Market participants note that since the company is a regular supplier of iron ore to Asia, it could more effectively participate in freight negotiations by providing some leverage for an agreed price. At the same time, at least one large batch of HRC was sold to Asia by the supplier.

Market participants note the relative seasonal strength of the Russian market and the moderate volume of supply in the market, despite the decline in import demand in Turkey by almost half over the past six months. High slab prices continue to support the coil market somewhat, along with periodic news of iron ore shortages, but overall sentiment remains bearish, the sources said.