Russia’s billet export market experienced a noticeable price increase toward the end of last week and early this week, driven by active sales strategies from suppliers. Offers from Black Sea ports moved up to around $455–460/t FOB from $450–453/t FOB previously, while some producers, not under pressure to sell, indicated even higher target levels. Most mills are currently offering material for the May shipment.
Trading activity, however, slowed down by the end of the week as the sharp depreciation of the rouble created additional uncertainty. Buyers and sellers alike shifted to a more cautious stance, preferring to delay new bookings until the currency situation becomes clearer. At the same time, the conclusion of Ramadan and extended holidays across the Middle East and North Africa further reduced market activity, as these regions remain key destinations for Russian semis.
Despite the weaker rouble, suppliers are not showing readiness to grant substantial discounts. Production costs continue to rise due to higher raw material and energy expenses, while increased tax pressure since the beginning of the year is also weighing on margins. Under these conditions, many mills appear willing to limit export volumes rather than lower prices, maintaining a firm position in negotiations.
In Türkiye, demand has been moderate but steady, with several deals concluded for Russian billet. Around 10,000 t was reportedly sold at approximately $475/t CFR Bartin, equivalent to about $450/t FOB, for late April–early May shipment. Smaller volumes were also traded at $480–485/t CFR Izmir. Compared to earlier offers at $470–475/t CFR, these deals indicate a $10/t increase over the course of the week.
In contrast, suppliers in Russia’s Far East remain largely inactive in export markets. Elevated production costs continue to limit competitiveness, and earlier offer levels near $425/t FOB have not attracted sufficient buying interest.
The broader global backdrop is adding further complexity. Ongoing tensions in the Persian Gulf are increasing uncertainty across commodity markets, affecting shipping availability, freight rates, and energy prices. These factors are putting additional pressure on steel producers worldwide, many of whom are attempting to push prices higher to offset rising costs, although actual transaction levels remain mixed.
Overall, the Russian billet market is currently shaped by firm supplier expectations and cautious buyer behavior. Future developments will largely depend on currency stability, the return of demand after the holiday period, and how geopolitical risks continue to influence logistics and cost structures.
Comments
No comment yet.