In January, Russia's billet exports dropped significantly. This decline, combined with the strengthening of the Russian ruble, has negatively affected the competitiveness of Russian exporters in global markets. The appreciation of the ruble has put additional pressure on exporters, creating a challenge for suppliers offering more competitive prices in global markets.
Suppliers continue to raise prices despite the effects of increased competition in global markets. Some producers are reportedly bidding with price increases of $3-4 per ton. However, it is still difficult to get deals at these higher prices as buyers are reluctant to accept higher offers.
While the market has been largely quiet for Turkish buyers, many are waiting for possible price cuts from Kardemir. According to a market source of SteelRadar, Kardemir's billet prices are expected to drop by $5 to $10.
Last week, Russian suppliers offered billet at $450-460/ton CFR Türkiye, while Turkish buyers had counter offers at $450-455/ton CFR Türkiye. On the other hand, Russian suppliers have raised their billet prices for March-April shipments from $435-445/ton to $440-450/ton FOB Black Sea. However, despite these price hikes, producers said that it is difficult to make deals as buying interest remains weak.
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