CIS and Russian HRC export offers down another $70 cfr Gulf

Ukrainian and Russian exporters have lowered hot rolled coil offer prices to buyers in the Persian Gulf by a further $70 per tonne, but failed to attract new business, market players told MB.

“Even if you come down with prices, there are no buyers,” one pipe producer source said.

“The markets are as good as dead. There is no real buying going on,” a trader added.

The latest offers of Russia and Ukraine-origin hot rolled coil quoted to buyers in the Middle East stood at $420-470 per tonne cfr main Gulf port for January/February delivery, down from $490-540 three weeks ago.

Market players remained uncertain as to whether prices can go much lower or whether they are nearing the floor.

“Right now, everything is at the absolutely lowest level. I doubt prices can go lower than the mid-$400s,” the pipe producer said.

“Things won’t improve before the end of Q2 next year. It will take this long for destocking to take place. Most people are holding one to two and a half months’ stock,” he added.

But not everybody agreed.

“Prices will be back down to $350 per tn by June/July next year. We’re not too far away from that now,” a second trader told MB.