CIS plate exporters keep following the upward trend in the flat product market especially in view of steadily strong demand for the material. Yet, buying activity in most sales outlets differs. It has improved considerably in Southern, Central and Eastern Europe as well as in Turkey and Egypt, while in the rest of the Middle East demand remains low.
At the same time, the rise in export prices for plate from Ukrainian and Russian mills has been about $40-124/t compared to late December depending on a supplier, but mills are planning to go further and are already considering another increase.
So, Metinvest International S.A. has already started offering plate to be produced in March by Ukraine’s Ilyich and the product has gained $40-60/t in two weeks or $60-100/t over the month. In particular, market participants report the above material is available to the Middle East and North Africa at $750-760/t FOB Odessa. Plate from Ilyich can be reportedly bought in UAE at $820/t C&F. Export prices for the mill’s material to Europe are quoted at about $770-780/t FOB Odessa or $780/t DAP. However, it is rumoured that the supplier is testing customers with the levels by $20-40/t higher than the above ones.
Moreover, March production from Alchevsk SW is reportedly offered to European buyers at EUR 600-605/t ($822-830/t at the exchange rate EUR 1 = $1.37) FOB/DAP.
DMZ, in turn, has not even started filling up March order book. The latest deals with Middle Eastern and North African customers for February output have been made at $700/t FOB Mariupol or $720/t FOB Odessa. To Europe the material was quoted at EUR 555-570/t ($760-781/t) FOB Izmail/DAP, by an average of EUR 65-70/t up from prices for January production. At the same time, due to currency fluctuations, the rise in the US dollar terms has climbed from $89-96/t to $116-124/t.
Russian producers of plate are also staying away from the market. February production from Asha SW is not offered for export in view of rather big demand in the domestic market, while the most recent contracts for January have been signed at $620/t FCA. February production of plate from Severstal was offered at $730/t FOB St. Petersburg in early January
(Source: www.metalexpert-group.com )