Posted on 25 Jun 2019
CIS hot rolled coil prices remained unchanged last week in a low trading market peppered with few sales at relatively unchanged on-week levels, Kallanish notes.
Turkish demand has picked up somewhat on the back of suddenly-reduced availability and forthcoming maintenances. This resulted in a booking of Ukrainian material at an equivalent of around $480/tonne fob Black Sea, unchanged on-week. Middle Eastern and Latin American demand remains muted, while Southeast Asian price decline and lower-priced regional offers amid ongoing uncertainty are also pricing out the majority of seaborne suppliers.
However, mills are sold out of July production and do not chase sales, traders say. The ex-Baltic shipping producer, with its regular European business, was also seen keeping offers steady, and indicating very limited – if any – availability. A Russian Urals-based exporter is sold out of July output, having indicated $490-495/t fob for large coils and sold it to its Turkish Iskenderun-based subsidiary at around $510/t cfr a week prior.
The summer lull appears to have begun in the Black Sea export market already. All major fundamentals – seasonal demand, output volumes, and prices – suggest a further retreat of activity for the next several weeks
