Russian suppliers have lowered their HRC offers

The HRC market is experiencing notable changes as Russian suppliers have lowered their offers for August production to $545-550/t FOB Black Sea, compared to the $550-555/t range from two weeks ago. Despite this price adjustment, there is a noticeable lack of seller activity, and the volumes available for trading in August are still undetermined.

Turkish buyers, however, have been proposing prices significantly below those offered by Russian suppliers. There is a consensus among some market players that a price of $555/t CFR, which is around $535/t FOB Black Sea, might be acceptable. Others believe the workable price level is closer to $530/t CFR, or $510/t FOB, influenced by the availability of cheaper HRC from China and the current low demand.

This gap between Russian supply prices and Turkish buying expectations underscores the complexities within the market. The reduced demand, coupled with competitive Chinese pricing, is creating a challenging environment for Russian suppliers trying to secure deals at their desired price points.