Although demand in the CIS hot rolled coil export market remained moderate last week, suppliers indicated they are increasing prices. The rise is on the back of a rebound in prices and demand in Turkey – The main CIS HRC buyer – and a general bullish sentiment globally for the second quarter, market participants tell Kallanish.

The Turkish HRC buying spree and hiking Indian offer prices are driving the increase, along with expectations of higher prices and demand in China and wider Asia after the Lunar New Year holidays and China's Winter Olympics. Surging iron ore, along with rising scrap, are also supporting the ascending dynamic. Amid seasonally strengthening domestic Russian demand, supply is also limited, lending more support.

From about $770-790/tonne fob Black Sea early in the week prior to last, Russian and Ukrainian HRC offers, in some cases for late-April loading already, were voiced at $820-840/t fob early last week. By the end of last week, they had risen to $850-870/t fob. Although purchasing remains lacklustre, creating delayed demand, sellers remain firm in their pricing, traders say.

In addition to Turkey, the European market remains attractive at higher prices, which ranged from $900-910/t fob northern Russian ports last week. Southern Europe was meanwhile also becoming a targeted market once again for CIS producers. As Asian supply has dried up, market sources do not rule out sales to all European destinations in the coming days.

China still maintains the promise of post-holiday revival, while India's returning domestic demand is seeing the country's suppliers continuously raising their offers, ruling themselves out of regions such as Turkey, the Middle East and North Africa, and some of Europe. This is instilling more confidence into CIS producers' pricing policies.

Overall sentiment remains bullish, with much of March-production books already allocated, ongoing maintenances reducing availability, and down- and upstream-related products, such as coated coil and slab, also gaining momentum.