News Room - Steel Prices

Posted on 08 Nov 2023

Russian billet export prices follow scrap upwards

Russia’s billet export market remains quiet with producers following the increases in imported scrap values in Turkey, market participants inform Kallanish.

Russia-origin material for December shipment was available for foreign buyers at slightly above $480/tonne fob Black Sea, according to a trading source.

A spot deal last week was reported at $508/t cfr Turkish Black Sea ports for 5,000 tonnes of billet for prompt shipment. At the same time, some market participants doubt the deal took place, considering the high price, even accounting for a premium for prompt shipment.

“In the Black Sea region, Turkish buyers are waiting for Kardemir’s new prices, considering them more attractive [than Russian product] in terms of logistics and payment terms,” a Russian trader says.

The exchange rate on Tuesday was RUB 91.82 per dollar, in contrast to RUB 93.08 a week earlier. This makes shipments abroad less appealing for exporters as they would receive fewer roubles for the same dollar-denominated export price, forcing them to raise dollar prices in an unfavourable demand environment.

As a result, Russian billet is assessed at $470-475/t fob Black Sea compared to $460-470/t fob last Friday.

A deal of unconfirmed origin was also reported to Egypt done at $517-520/t cfr for 20,000 tonnes; however, it was not verified at the time of publication.

Source:Kallanish