Hot-rolled sheet prices in Russia’s Central Federal District around Moscow drifted down in the week to Monday July 12, with some producers considering lowering their offer prices to generate buying interest, sources told Fastmarkets.
Hot-rolled sheet
Severstal, one of the major suppliers to the region, has already released new offers prices for August HR sheet at 99,700 ($1,339) roubles per tonne cpt, down from 105,000 roubles per tonne cpt, quoted for July, sources said, adding that the steelmaker was ready to consider reducing its July prices for stockists to 99,700 roubles per tonne cpt, because of the lack of trading activity.
Traders that have stocking agreements with steel mills receive material into stock without payment and can then buy agreed tonnages from the stocks they hold at any time during a given period, at the price in effect at that time.
“There are no official messages from other mills, but I think they will follow the same pattern. Demand is too slow,” a trader said.
“Buyers are quiet,” a second trader said. “Usually, at this time of the year, we have much better sales. But Russia’s new export duty has frozen the market.”
July HR sheet offers from Magnitogorsk Iron & Steel Works (MMK) and Novolipetsk Steel (NLMK) were around 105,000-106,000 roubles per tonne cpt, but sources expect the producers to make concessions similar to Severstal’s.
Market participants said the workable level for HR sheet was about 100,000-104,000 roubles per tonne.
Fastmarkets’ weekly price assessment for steel hot-rolled sheet, domestic, cpt Moscow, Russia was 99,700-105,000 roubles ($1,339-1,410) per tonne on Monday, including 20% value-added tax, down from 105,000-106,000 roubles per tonne the previous week.
In the secondary market, HR sheet from large traders was on offer at 104,000-107,000 roubles per tonne on Monday, down from 106,000-111,000 roubles per tonne a week earlier.
Cold-rolled sheet
Cold-rolled sheet offers from domestic mills were heard at 118,000-120,000 roubles per tonne delivered, but buying interest at that level was close to zero, largely due to buyers having sufficient stocks and much cheaper offers from Kazakhstan and Ukraine, sources said.
“ArcelorMittal Temirtau is offering cold-rolled coil to the Moscow region at about 90,000 roubles per tonne, so traders buy it and cut it to sell CR sheet to the secondary market at much more attractive prices than the Russian mills offer,” a trader told Fastmarkets.
Market sources estimated the workable level for domestic CR sheet from local mills at about 108,000-110,000 roubles per tonne.
Fastmarkets’ weekly price assessment for steel cold-rolled (CR) sheet, domestic, cpt Moscow, Russia was 110,000-118,000 roubles per tonne on Monday, unchanged from last week.
The assessment was a reflection of deals, lower end of offers and achievable prices reported by sources over the past week.
Plate
No new offers for steel plate from local mills were heard over the past week.
July plate offers from key local suppliers Asha Steel and MMK were heard at 105,000 roubles per tonne, unchanged from June. Plate was on offer from United Metallurgical Company (OMK) at the same price.
As a result, Fastmarkets’ weekly price assessment for steel plate, domestic, cpt Moscow, Russia remained at 105,000 roubles per tonne on Monday.
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