Hot rolled steel prices in the CIS continue to decline

Hot rolled steel prices in the CIS remain weak, although some producers are attempting to moderate gains on the back of a brief rise in prices in China over the past week.

HRC rolls are sold at 430 € /t ($ 490 /t) in all markets including Europe, Turkey and Latin America. This price, equivalent to roughly $ 470 /t delivered over the Black Sea, is unlikely to tempt buyers, according to traders. Ukrainian-made HRCs are offered at $ 455-460 /ton fob, experts add.

Demand in Europe is absent due to expectations of amendments to the import quota allocation procedures for 2019, while Southeast Asia, according to some traders, is happy with China's offer below cost. Vietnam, where Russian factories traditionally sell significant volumes, does not work at these prices, while positions remain extremely risky, as China's volatility persists, traders say.