FOB Black Sea prices for steel billets dropped to RUB 34,710 per ton ($418/t), a figure not seen since late December 2022. Hot-rolled coil prices followed a similar trajectory, sinking to RUB 37,700/t ($454/t), while cold-rolled coil reached RUB 47,800/t ($575/t), marking its lowest point since the beginning of 2023.
According to Boris Krasnozhenov, Head of Equity Market Research at Alfa Bank, the current pricing levels are unsustainable for many non-integrated producers, whose production costs now outpace selling prices.
It's expected that 2025 may bring a sharp increase in regional pricing differences. The same steel grade could vary by several hundred dollars across markets in Asia, Europe, and North America, driven by protectionist policies and logistical constraints.
USD 1 = RUB 83.50
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