According to November 2022 results, billet offers from Russian suppliers in the Black Sea Region decreased by $31/ton to $490/ton FOB. During the month, the market followed a downtrend followed by a positive correction. During most of the November, quotations declined, driven by the aggressive pricing policy of Chinese semi-finished exporters.
The decline in prices and the increase in exports from Asia were mainly due to the negative demand dynamics in the Chinese domestic market due to the worsening epidemiological situation in the country and the continued zero-tolerance policy against Covid-19. In addition to all these, the effect of seasonal and macroeconomic factors continued the situation.
The offers of Russian exporters for small-tonnage transactions (2-3 thousand tons) could not compete with large-tonnage deliveries from China to Turkey.
At the same time, the demand for billet in Turkey was low, the negative correction in raw material prices continued and there was almost no demand for the sale of finished products both in the domestic market and in the export market.
Under the current conditions, Russian exporters signed contracts with buyers of semi-finished products from Taiwan. In the middle of the month, contracts for the supply of vanadium added billet from Far East ports were at $495/ton CFR Taiwan. At the same time, the minimum price of other suppliers was recorded as $505/ton CFR Taiwan from India.
In the third half of November, there were signs of a smooth recovery in demand and price increase in Turkey. Market players noted the limited supply of semi-finished products from Russia and that other suppliers are acting less aggressively despite improving conditions in the Asian domestic markets.
The price was supported by high-priced export sales of Turkish domestic rebar and continued limited long product production. Offers from Russia are recorded at $520/ton CFR ($485-490/ton FOB).
Large tonnage (50 thousand tons) delivered in December were made by Asian suppliers making Turkey at $520/ton CFR and Algeria (20 thousand tons) at $520/ton CFR.
In the last week of the month, prices increased by $15/ton to FOB Black Sea by $500/ton.
Comments
No comment yet.