In August, flat steel prices in the Russian domestic market continued their downward trend. In some categories, this process moved faster, while in others it was slower. The most difficult situation was seen in the heavy plate sector, where demand from machinery manufacturers and steel construction producers virtually collapsed. Steelmakers were forced to implement unprecedented price cuts, and for the first time in a long while, prices fell below spot market levels.
A similar correction, albeit in a milder form, is also being observed in other sectors. Mills are adjusting flat steel prices to bring them more in line with market quotations; however, these quotations also continue to decline gradually. As long as negative processes persist in the economy, neither producers nor distributors have alternative options.
Compared with the overall picture, welded pipes appeared relatively stable. Over the past few weeks, prices remained relatively steady in most regions; demand was not extraordinary but sufficiently resilient. Steelmakers hope this stability will continue in September, which would allow coil prices to remain at their current levels.
Divergence in Export Prices
Despite weakness in the domestic market, Russian producers are facing a different picture on the export side. Severstal offered hot-rolled coil (HRC) at $485–490/t CFR North Africa, with sales reported to have been concluded at $490–495/t.
Meanwhile, NLMK completed a deal at a higher price level in the Turkish market. The company sold 40–50 kt of HRC for October shipment at $510/t CFR Türkiye. Türkiye’s import demand and logistical advantages compared to North Africa stand out as the main reasons behind this price difference.
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