Exports of Russian square billets decreased by 12% in 2023

The main reasons for this decline were higher transport costs to Asian buyers and lower business activity in China, which is a key sales market.
Asia and the Middle East and North Africa (MENA) remain the main export destinations for this type of product. However, despite the decline in volumes, prices for square billets show diverse dynamics. Since the beginning of 2024, a drop of 8% to $520 per tonne FOB Black Sea has been recorded, while the Far East direction has seen an increase of 2% to $510 per tonne.
Overall, the average price for 2023 is $513 per tonne, and analysts do not expect significant changes in the near future.
In domestic market rebar production being prioritised than square billet production. The largest players in this market are such companies as Mechel, Severstal, Evraz, NLMK and MMK. Domestic rebar prices are showing growth, increasing by 8% to RUB 65,000 per tonne by the end of February 2024 compared to the 2023 average of RUB 55,000-60,000 per tonne.
Thus, export of square billets turned out to be less profitable than domestic sales of rebar. Under current conditions, it is more profitable for steel companies to focus on the domestic market, selling more profitable rebar rather than exporting semifinished products.