Prices of hot rolled coil offered by Russian and Ukrainian producers in export markets remain at last week's levels, but demand has dwindled somewhat. The decline in enquiries is partially due to long lead times offered by mills, and partially on the back of the need by large importers in Asia to digest acquired volumes, market sources tell Kallanish.

Ukrainian material is offered to Turkey at $425-435/tonne cfr, netting back to $410-420/t fob Black Sea, for medium volumes, and slightly higher for large ones. Both small and large coils have been booked by Turkish buyers in the past week, at $3-5/t below offers, sources say. Similar offers are tabled to the Middle East and Africa, but demand there is a long way from recovery. Moreover, competition is fierce and often not in favour of CIS producers, as regional suppliers such as Egypt are able to deliver quicker at comparable prices.

Demand in Asia has also softened somewhat, and with China's four-day long holiday starting on Thursday, there is an expectation of a break in bookings as the country digests previously booked volumes. Vietnam is also out of the market for CIS HRC, as it digests June bookings, traders say.

Sentiment is that the market has reached a zenith and will be quiet for some time, until lead times are shorter and the post-Covid-19 recovery strengthens. Several traders are cautiously talking about the second wave of the pandemic occurring in the autumn and potentially hampering the industry’s recovery. But others expect China's demand to return to feed rising consumption, which some sources pin at 4-5% this year.