Russian steel prices are facing continued downward pressure due to the significant weakening of the rouble, further compounded by ongoing declines in scrap prices.
Russian billet offers for January shipment have fallen to approximately $455-460/t FOB, marking a $5/t decrease compared to recent levels. In Türkiye, offers for Russian billet are hovering around $480-485/t CFR, though actual sales are expected to occur at slightly lower levels, around $465-475/t CFR.
The primary driver of the price drop is the sharp decline in the rouble's value. As the currency depreciates, Russian exporters are compelled to adjust their prices to remain competitive in the international market. Additionally, the persistent decline in scrap prices has intensified pressure on billet sellers, further limiting their ability to maintain previous price levels.
The volatility in the rouble's exchange rate is making it difficult for market participants to predict future trends. With no immediate signs of stabilization in currency or scrap prices, Russian steel producers may face continued pricing challenges in the short term.
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