Russia's HRC market shows slight activity

HRC sellers were initially quoting their product at approximately $550-560/t FOB Black Sea, slightly lower than the rates voiced two weeks prior. Despite tepid interest from buyers, around 5,000 tons of HRC from May production were sold at $558 per ton FOB Black Sea. Subsequently, suppliers adopted a cautious stance, observing market dynamics before proceeding with further offerings. 

Anticipating sluggish domestic trade in June, Russian suppliers are expected to pivot towards exporting their HRC, potentially lowering export prices by $5-10/t to compete with Chinese suppliers. Sellers assert that a feasible starting price for exports would be $600-610/t CFR for the MENA region ($580-590/t FOB Black Sea).

Here's a summary of the HRC price offers for June shipment from various Russian mills:

MMK (Magnitogorsk Iron and Steel Works):

• $570-575/t FOB Black Sea
• $600/t CFR Türkiye
• $610/t CFR MENA
• $620/t CFR Latin America

NLMK (Novolipetsk Steel):

• $580-585/t FOB Black Sea
• $610/t CFR Türkiye
• $620/t CFR MENA

Severstal:

• $600/t CFR Türkiye
• $610/t CFR MENA
• $620/t CFR Latin America