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Uncertainty in Asian HR Coil Market Deepening
Under the situation that it falls on the off demand season for the market prices of hot-rolled steel coils in Asia and negotiations have not progressed, as a new supply of Russian products has appeared, a movement of the market is in a state to be anything but predictable. A source is observing that a way out might be difficult from a chaos until the valuation of Russian HR coils in quality is fixed whether such HR coils are equivalent to the 1st or 2nd class Chinese HR coils.

It has been since October-November this year when Russian HR coils have launched in Asia after a long absence. It is because the Suspension Agreement between the governments of the USA and Russia expires on December 19, antidumping duties (78-185%) revive and Russian products are shut out from the US market. For this reason, such products seem to be diverted to Asia. Behind the backdrop, there is another fact that Russian mills are aggressive to export due to the weak ruble too.

Offer prices of Russian HR coils are said to be the level of $480 CFR which is similar to the market prices of Chinese 2nd class products. If the quality of their products is similar to that of Chinese 2nd class ones, it will end up with customers' treatment as the 2nd class ones. However, if that is similar to that of Chinese 1st class ones, it will be another story, and Russian mills are to be offering their prices largely to collapse the 1st class market prices ($500 CFR or so).

Such Russian products are said to be flowing to Asia via the Black Sea. Accordingly, when loading ports are frozen, such noise will be ended soon.

What the source is concerned about Russian HR coils is the case for such products contracted now to arrive in Asia in around June next year due to unstable shipments. It is because in the heat of a price rise in Asia, Russian HR coils flow and there is a possibility for the trend of a price rise to be disrupted.
last modified : Fri 12 Dec, 2014 [11:13]
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