CIS hot rolled coil prices are falling, expectations remain weak in February

In the fast-paced world of steel, February is proving to be a pivotal month for the CIS flat steel market. Key factors, including heightened demand, disruptions from the Chinese Lunar New Year break, and the influence of Asian suppliers, are set to shape the industry's trajectory in the weeks to come.

Here are some factors affecting prices:

Rising demand in March-April:

Anticipated heightened demand for rolled products from the CIS during February, with deliveries scheduled for March-April, is a significant factor influencing market prices. Industries are looking to replenish their warehouses ahead of the spring period when consumption traditionally increases.

Chinese Lunar New Year impact:

The ongoing celebration of the Lunar New Year in China until February 9th has led to a temporary shortage of suppliers from China in the market. This absence is contributing to a fluctuation in supply and demand dynamics, impacting the overall pricing structure.

Asian suppliers' influence:

The interest of Asian suppliers in maintaining higher steel prices is exerting upward pressure on the market. The strategic decisions made by key players in Asia are reverberating across the global steel industry, affecting pricing trends in the CIS flat steel market.

While some buyers are responding proactively to the market conditions, seeking to secure inventory ahead of the anticipated surge in demand, others are adopting a more cautious, wait-and-see approach. This reflects a diverse range of strategies as market participants evaluate various scenarios for the future development of events.

In the current landscape of the CIS flat steel market, notable producers are quoting competitive prices for HRC. Metinvest leads with an offer of $670 CFR Türkiye, followed by MMK at $635 CFR MENA and NLMK at $635 CFR Türkiye. Severstal is also a key player, presenting an offer of $630 CFR Türkiye. Interestingly, recent market trends indicate a subtle decrease in these prices, with a general drop ranging from $5 to $10. This nuanced shift suggests potential factors such as increased market competition, strategic pricing decisions, or adjustments in the supply and demand dynamics within the industry.