Page 105 - RusRPTJul20

fertilisermajorPhosAgro.Asreportedby​bneIntelliNews,​ Phosagroandother fertiliser company were generally seen as ​well-positioned amid the coronavirus (COVID-19) crisis​. BCS Global Markets on June 29 reminds that US is an important export market for phosphates, with annual imports of 2.5mn tonnes, while Morocco and Russia are the largest and second-largest exporters of phosphates to the US. In 2019, Phosagro’s export revenues to the US stood at RUB19.4bn ($276mn) – circa 750,000 tonnes. "The introduction of import duties, if approved, depending on their size, could visibly deteriorate the export delivery terms for Phosagro into the region and provide downsize risk for global DAP prices, as Morocco and Russia may need an alternative market to export to," BCS GM warns.
Russian metals major ​Norilsk Nickel​ had to admit another environmental violation ​after reports from RBC business portal and Novaya Gazeta claimed the company was discharging waste from its Arctic Talnakh enrichment plant into local rivers. The company stemmed the flow of waste discharge and opened an internal investigation into the matter, while the regional office of the Investigative Committee began an audit of the plant. As reported by ​bne IntelliNews,​ Norilsk Nickel faces an environmental emergency of federal scale with diesel fuel spill in the Arctic region.
The prolonged decline in HRC steel prices is stopping, as demand on the secondary market is recovering​. Most market participants expect producers to try to increase prices next month also due to rising export HRC prices, which also supports prices on the secondary market. At the end of the last week, it was reported that MMK would revise its July HRC offer from flat pricing m/m to an increase m/m. If another plant of the Big Three (NLMK, Severstal, MMK) announces an increase in offers this week, retail prices may start rising. Meanwhile, export HRC prices rose 5.1% w/w to $410/t FOB Black Sea. The price increase is driven by the strengthening raw materials segment and the need to replenish stocks among some consumers.
On the long steel market, retail rebar prices in Moscow were flat w/w at $385/t (Rb26,875/t). Consumer activity on the market recovered at a moderate pace last week. There are no problems with shortages of inventories on the market, even though demand continues to recover, resulting in limited room for price increases in the short-term.
Meanwhile, export billet offers rose 4% w/w to $375-385/t FOB Black Sea. The billet market was supported by demand from China and Southeast Asia. Due to limited July billet supply, buyers are forced to accept the terms of supplies. In other areas, demand is limited.
​The growth of consumer activity in the segment has stopped, with demand insufficient to sell previously formed inventories. Information about a possible price increase in July continues to come from the primary market. However, traders note that, based on the cost of current inventories, retail prices may not immediately rise even if plants decide to hike prices. On the other hand, traders do not have much room for discounts, minimizing the likelihood that retail prices will fall this week. Meanwhile, CIS export slab prices rose 1.4% to $370/t FOB Black Sea on the back of limited supply. Demand from China traditionally provides support to exporters. However, there is buying interest in other areas as well.
On the long steel market, retail rebar prices in Moscow rose 1.6% w/w to
105​ RUSSIA Country Report​ July 2020 ​ ​www.intellinews.com