Tight supply and higher export quotes to drive prices up

摘要

Mills’ CR flats prices lost 4% in December due to tough competition withimports and rather weak demand in the home market.Russian CR flats producers are unlikely to have major difficulties securing acceptable capacity utilization in the next few months. Domestic CRsteel supply will be limited in the forecast period as CherMK will stopits CR mill 2100 (1.3 million tpy) for a 40-day overhaul in mid-January.MMK may also cut CR steel output a bit at the end of the forecast periodas the producer will face feedstock shortage due to a series of repairsand modernization of HR mills. Moreover, Russian producers may counton steady supplies of CR coils for further coating, even despite the offpeak season, amid introduction of an AD duty on Ukrainian and Chinesegalvanized steel imports. In the circumstances, suppliers are unlikely tobe much flexible in pricing.