NLMK has reduced the price of cold-rolled sheet at custody warehouses by RUB 1,000/t ($10). Market participants report that 1 mm thick sheet is now available to traders at RUB 83,500/t ($864) (SRT, payment in the month of delivery).
The mill is trying to support traders' demand taking into account the decrease of warehouse quotations to RUB 83,500-84,000/t ($864-870). It should be noted that additional discounts from the mill are unlikely this month. Stocks of cold-rolled sheet in warehouses are far from being in surplus, and by the end of the month a reversal of quotations on the secondary market upwards is not excluded, even in conditions of relatively low final demand. These expectations take into account the reduced output of cold-rolled sheets and coils at MMK and NLMK in October, during the period of repair works at the mills.
Prices for CRC produced in November under direct agreements remain higher than under storage contracts. With delivery to Moscow, CRC are offered at RUB 83,000/t ($859), cold-rolled sheets at RUB 84,500/t ($875) (CPT, incl. VAT); at the same time, all market participants have no doubts about their correction due to payment of annual bonuses or traditional revision.
$1 = RUB 96.58
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