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|Russian HR Coils Offered at $450 CFR in Middle East, Etc.|
Negotiations on Russian hot-rolled (HR) steel coils seem to have been undertaken at $450-460 CFR for January shipment. Chinese HR coils' prices are said to be the level of $480 CFR, which are predicted to be lowered further in order to compete with Russian HR coils.|
Russian mills are to lower their offer prices responding to the depreciating ruble. Meantime, projects and construction and civil engineering works have been suspended due to a price fall of crude oil in the Middle Eastern region, and naturally, demand for steel products is decreasing. Under the circumstances, it is subtle whether customers will purchase Russian products on spot basis. At the present moment, there is no information reported to Japan on concluded contracts of Russian products.
Besides Russian and Chinese products, Indian HR coils have been offered. Prices of them are reported to be similar to those of Chinese ones. And, prices of Korea's POSCO are around $490 CFR, which are likely to penetrate into rerolling mills.
In case of Russian products, there had been cases that when the ruble had changed to be appreciated, HR coil mills of that country had cancelled contracts in the past. If such things will happen, such attitude will disrupt further the HR coil market.
|last modified : Wed 07 Jan, 2015 [10:21]|