Posted on 15 Dec 2020
CIS hot and cold rolled coil export prices continue to rise in line with the global ascending trend, buoyed by rising raw materials prices and increasing shortages of material in Europe and Turkey.
The latest sales to Turkey were concluded at $690-700/tonne cfr for large coils from one Russian and one Ukrainian supplier. Another Russian mill has no allocations for exports on the back of satisfactory domestic demand and traditionally low export allocations. Another, ex-Baltic selling supplier continues to serve the European market.
Offers in the Black Sea are now at a minimum of $700/t fob for late-March and April loading. The ex-Baltic supplier concluded sales to Europe at $700-730/t fob last week, with new offers this week expected at $730-740/t fob, sources say. Southern European demand was heard at €620-630/t ($753-766) cfr, up on last week's indications of around €610-620/t cfr, Kallanish hears.
Turkish demand continues to rally too, as domestic mills continue to ramp up offers, with only April production now available. But sales volumes are expected to decrease from now on due to forthcoming holidays and long lead times enabling mills to take a step back in the continuously ascending market.
Producers' confidence is being stoked also by reactivated demand in Asia, where prices are expected to exceed $700/t cfr already this week.
In the cold rolled segment, offers are scarce on booming domestic CIS demand, and were last heard at $780-790/t fob to Turkey and $810-830/t fob to Europe. This week is expected to see higher offers for April-loading material, but available volumes are extremely low, traders note. This is enabling suppliers to continue to increase their offers.
Source:Kallanish
