In the Turkish market, Russian billet prices have risen to around $460/t CFR, which corresponds to approximately $440/t FOB Black Sea. Two weeks ago, offers were around $450–455/t CFR ($430–435/t FOB). This increase is driven by Kardemir’s recent billet sales at $500/t EXW last week. Other sellers are now trying to push their prices higher as a result.
A similar price rise has been observed in Egypt. Local re-rollers have received offers for Russian billet at $495/t CFR, which is roughly equal to $460/t FOB Black Sea.
Interestingly, Russian exporters have not lowered their prices this week despite the weakening of the ruble. On the contrary, some suppliers have slightly increased their offers. However, these hikes are mostly seen as symbolic. There are still expectations of a price correction due to developments in the Chinese market and continued exchange rate volatility.
Russian billet prices for September shipment have mostly remained stable at $455–465/t FOB Black Sea. Mid-sized producers are generally aiming to sell at $460–465/t FOB, while larger mills are offering within the same range. Some producers are even asking for $465–470/t FOB. Since most of the August output has already been sold, mills are in no rush and prefer to wait for stronger bids to maintain higher prices. However, if demand remains weak or the exchange rate exceeds RUB 78.50 per dollar, a price reduction of $3–5/t is possible.
Billets from the Donbas are being traded at $440–450/t FOB Black Sea, depending on quality and producer. It is reported in the market that a 20,000-ton sale was concluded at $450/t FOB to a buyer in the MENA region. This is said to be a special quality billet sold at a premium, but no further details have been disclosed.
In the Far East, Russian billet prices are currently assessed at $410–415/t FOB via eastern ports. According to an industry representative, recent natural disasters such as the tsunami have not disrupted the operations of Russian mills in the region.
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