The prices for Russian billet have gone up, reflecting the rising trend in scrap values in Türkiye. Nevertheless, a decrease in demand from Turkey for billet of Russian origin has been observed, putting pressure on the prices.
Russian billet suppliers foresee a potential continued increase in prices, which they attribute to limited material availability.
Russian billet offer price for January shipments to Türkiye increased to $545-550/t CFR, up from last week's rate of $520/t CFR. This change in pricing is notable in the market.
What is happening in the Russian domestic billet market?
In recent months, The Federal Antimonopoly Service opened a case against Ural Steel JSC due to rising prices for steel billets needed in the production of railway wheels. Since the end of 2022, the increase in prices for billets has exceeded 40%, although their cost has changed slightly. Russian suppliers are also now under pressure.
The billet price on the russian domestic market depends on the FOB Black Sea price. For example, OEMK sells billets for RUB 45,000 ($500) CPT.
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