Hot rolled coil prices remain stable on weak export demand

Export demand for coils from International markets remains weak, producers continue to push for stronger prices, which allows them to sell at last month's levels, market sources

Russian producers are offering October produced HRC at $700-710/tonne fob Black and Baltic Seas respectively, with Severstal selling to Latin America and the Middle East, traders say. MMK, meanwhile, is relatively confident in closing October books, as Iran remains a major buyer at prices €540/t cfr Anzali, equivalent to $710/t fob Novorossiysk. 

Currently, the demand is weak. Although buying is rather modest, the pent-up demand should bring more increases next month. “Mills are rather aggressive in their offers, and the demand is bound to improve more next month, although November could be a different matter altogether.” a trader said.

“Coils market is stable; we still have to do a lot of legwork to close the deal, and go down $1-2/t on our offers, but coils sell,” a Russian producer says. Problems with insurance and financing remain in North Africa, which is a hindrance, but “The market is absolutely not collapsing, and quite fairly priced, considering slab is around $625-635/t fob Black Sea and going up.”