Early in the week, buyers anticipated price reductions, but a rapid appreciation of the ruble, gaining nearly 6%—has altered market sentiment. Additionally, developments in the scrap market have reinforced exporters' positions, leading them to reconsider their pricing strategies.
Despite weak demand and sluggish buyer activity, Russian suppliers have become more resistant to lowering their offers. Having sold significant volumes in recent weeks, many exporters are now reluctant to engage in further transactions unless prices improve. As a result, they are targeting an increase of at least $10 per ton in billet prices, with current offers remaining within the $435-445/t FOB Black Sea range.
In Türkiye, transaction prices have hovered around $450-460/t CFR ($430-440/t FOB Black Sea). However, buying interest has remained subdued as Turkish consumers opt for domestic alternatives or other sources. The most recent confirmed transaction was sold at $440-445/t CFR.
The initial expectation of a declining market is being countered by rising scrap prices, likely prompting renewed buyer interest. Russian exporters, constrained by prior commitments for March deliveries, are cautiously assessing their next moves. With the ruble strengthening and raw material costs on the rise, an upward revision in billet prices appears increasingly probable. This shifting landscape poses a significant challenge for sellers, requiring them to carefully navigate currency volatility and uncertain global demand.
USD 1 = RUB 91.50
Comments
No comment yet.