Ukraine-based hot-dip galvanised coil producer Unisteel has shipped its first tonnages to customers in the EU. The plant despatched 40 tonnes to Estonian steel distributor and profiler Metexcom. The latter has already processed the consignment into profiles, which it dispatched to end-users in Finland, Steel Business Briefing learns from Unisteel.
The deal comes after Unisteel obtained environmental certification enabling it to sell in the EU.
In January-March, Unisteel exported 11% of its total shipments, mainly within the CIS (Moldova, Belarus and Azerbaijan). It now aims to export up to 30% of its HDG output, largely relying on newly gained opportunities to sell in the EU.
Unisteel is currently negotiating its first deliveries to Poland and promoting its HDG coils to Dacia, the Romanian subsidiary of French carmaker Renault.
While producers’ base price in May for 0.38mm thick galv sold domestically is 10,400 hryvna/tonne ($1,085 /t) ex-works, the same material can be marketed in Europe at 1-1.5% higher prices, which makes a difference even with dearer transport costs, SBB is told.
“Customers in Ukraine and CIS tend to cut their costs where possible, opting for material with 100-140 grams/square metre zinc coating and thinner gauges allowing larger footage as galv is ordered in metres. European buyers make more expensive choices in comparison and are more likely to order heavier coating weights (275-300 gr/m²) to the producers’ benefit,” Unisteel’s representative comments. Unisteel is part of the CIS galv maker Vektron group.
30.05.2011
SteelBB