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Mar.28.2024 1USD=7.0948RMB
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Russia Flat Steel: Market Moves up on Reduced Availability, Demand Rebound

https://en.steelhome.com [SteelHome] 2019-02-13 09:16:20

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Hot-rolled (HR) and cold-rolled (CR) steel sheet prices in Russia's Central Federal District around Moscow rose on reduced availability and a seasonal demand rebound in the secondary market, sources told Fastmarkets on Monday February 11.

Fastmarkets' weekly price assessment for Russia-origin 4mm HR sheet was at 41,200-41,600 roubles ($627-633) per tonne cpt Moscow on Monday, including 20% VAT, up from 39,200-40,000 roubles per tonne week ago.

"NLMK [Novolipetsk Steel - one of two major suppliers to the region] says it does not have March-rolled products for us, and is offering April-rolled material at a higher price," one trader told Fastmarkets.

NLMK's HR sheet offers for non-stockists increased to around 41,600 roubles per tonne, sources said.

The company is going to start reconstruction of blast furnace No6 at its Lipetsk site in May , Fastmarkets reported at the end of 2018.

The furnace will be stopped for 130 days during the dismantling and rebuilding, which will reduce pig iron availability over that period, that will lead to lower slabs and rolled-products output, sources said.

Severstal, another large supplier to Central district, was considering increasing its offer price by 200 roubles to 41,400 roubles per tonne cpt Moscow, according to market sources.

Neither NLMK nor Severtal had announced new prices to stockists as of Monday February 11.

Traders that have stocking agreements with steel mills receive material into stock without payment and can buy agreed tonnages from the stocks they hold at any time during a given period at the price in effect at that time.

Elsewhere, Magnitogorsk Iron & Steel Works (MMK), is planning to stop its rolling mill, which produces light coils, for modernization. During the stoppage, only heavy coils will be available from the steelmaker.

The company is not a principal supplier to the Central district due to its remote geographical location but the general reduction in material availability in the country will affect price sentiment in the district.

Large traders have increased offer prices for end users to 41,990-42,200 roubles per tonne, from 41,790-42,000 roubles per tonne in late January, amid a seasonal rebound in demand.

Between October and March, construction activity typically slows down in Russia because of poor weather conditions, so demand for steel products normally subsides. However, mills have not revised their prices as yet and the workable level for buyers remained unchanged.

"Export remains in priority of mills, at first they meet demand in the external markets and then offer to us what has remained," another trader said.

Fastmarkets' weekly price assessment for CIS-origin exports of hot-rolled coil (HRC) spiked to $500-510 per tonne fob Black Sea on February 11, up from $460-480 per tonne a week ago.

On average, the export market assessment has increased by $50 per tonne since late January after deferred demand appeared and buyers were in a hurry to restock before prices increase further.

Fastmarkets' weekly price assessment for 1mm CR sheet in Russia was 48,500-48,700 roubles per tonne cpt Moscow on February 11, up from 46,500-47,500 rouble per tonne a week before.

Mills have not announced new prices yet, although Severstal has intentions to increase its offers to at least 48,700 roubles per tonne. NKMK's offers remained at $48,500 per tonne at the time of assessment's publication. Earlier, mills were refunding bonuses to traders, although "for the moment it is not clear how large will be for March-rolled products, or will there be any bonuses at all," a third trader said.

Meanwhile, Fastmarkets' weekly price assessment for Russian domestic 20mm plate was 41,000-43,500 roubles per tonne cpt Moscow on February 11, widening upward from 41,000-41,300 roubles per tonne a week earlier.

One Russian supplier was heard to increase offers to 43,500-44,000 roubles per tonne. Offers from other mills were not heard to increase yet.

"Now we waiting to receive plate from Alchevsk [Alchevsk Iron & Steel Works - a mill in the Luhansk region of Ukraine, which is currently controlled by a pro-Russia rebel administration], which was supposed to arrive in December but the supplier delayed delivery because it was focused on export," the trader said.

Source from Fastmarkets MB
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