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So far this week, the steel export market in Russia has remained largely quiet due to the observance of Eid al-Adha in the Middle East, North Africa, and other Islamic countries. There have been no new supply updates from Turkey, one of the main importers of Russian slabs. Limited availability has kept Russian slab prices stable at $460-510 per ton CFR, equivalent to $440-490 per ton FOB Black Sea, depending on the supplier.
Reports indicate that Russian suppliers offering lower-priced slabs are providing resources to Italy at $520 per ton CFR ($490 per ton FOB), while non-sanctioned suppliers are quoting $540-550 per ton CFR ($510-520 per ton FOB). This wide price range reflects the impact of international sanctions on some Russian suppliers due to geopolitical tensions.
Additionally, the market for flat products is even more subdued. Sources from Chengjiu Metals reveal that Russian hot-rolled coil (HRC) is quoted at $560-570 per ton FOB Black Sea. However, market participants believe this price is too high, with the transactional range being $530-550 per ton CFR ($510-530 per ton FOB Black Sea). Currently, domestic trade prices for Russian HRC are relatively stable, and suppliers are not considering price reductions for export.
International Market Dynamics
NLMK Steel Plant Operational After Incident
Following a drone attack by Ukraine on June 17, 2024, at the Novolipetsk Iron and Steel Works (NLMK) located in western Russia, NLMK has reported that the plant is operating normally with no casualties.
Iran’s Steel Production Growth
According to the Iranian Steel Producers Association (ISPA), Iran’s steel production has continued to grow in the first two months of the current Persian year (March 21, 2024, to May 20, 2024).
Italy’s Crude Steel Production Declines
In May, Italy’s crude steel production saw a decline for the fourth consecutive month, dropping by 3.5% to 1.9 million tons. Alongside weak demand, the country’s second-largest steel plant, ADI, has also shown a decrease in production recently.
Turkey’s Borcelik Expands Cold Rolling and Galvanizing Capacity
Major Turkish flat steel producer Borcelik is currently expanding its cold rolling and galvanizing capacities. The company has detailed the expansion project, which includes the construction of new facilities in Bursa, Turkey’s fourth-largest city. The project aims to add an annual capacity of 1.8 million tons of cold rolling and 550,000 tons of galvanizing production, with a building area of 125,039 square meters (planned enclosed area of 63,567 square meters) and an estimated investment of 9.82 billion Turkish Lira (approximately $300.5 million).
UK’s Liberty Steel Plans to Sell Ostrava Plant
UK-based Liberty Steel, the third-largest steel company in the country, is planning to sell its Ostrava steel plant in the Czech Republic due to weak European market conditions and financial issues. The company is also seeking judicial restructuring in the Czech Republic.