Posted on 06 Feb 2024
Russian billet suppliers have raised prices, but limited interest from international markets is creating doubt over whether the hike will stick, considering the availability of material from other origins at similar prices, market participants inform Kallanish.
The increase is attributed to limited availability and in anticipation of a more active construction season in the region, absence of some Asian suppliers due to Lunar New Year. Also taken into account are the risks and higher costs stemming from the Red Sea shipping disruption.
Offers from Russia and occupied Donbas-based billet exporters are reported at $520-540/tonne fob Black Sea compared to $515-530/t fob a week earlier.
In Turkey, Russian-origin billet offers were heard at $550-560/t cfr Turkish Black Sea ports and at $565/t cfr Izmir. However, workable levels are estimated at $545-550/t cfr Black Sea, up from $535-540/t cfr earlier.
Iranian-origin billet was heard at $530/t cpt Iskenderun.
Billet of Indian origin underwent testing at $555-560/t cfr in Turkey. However, when comparing pricing from the same origin in markets closer to India, like the Gulf Cooperation Council, that destination seemed more favourable due to cost advantages and not needing to transit through the Red Sea.
Domestic prices in Turkey were at $585-595/t ex-works during the week.
As a result, Russian billet is assessed at $515-521/t fob Black Sea, up by $3/t compared to earlier last week.
Turkish billet imports other than Russia and Iran origin were assessed at $555-560/t cfr, considering the India-origin material offers heard during the week.
Source:Kallanish
