Russian billet suppliers swiftly entered the market with additional volumes, sparking occasional deals. However, the market is currently grappling with a sense of bewilderment as suppliers present prices that are perceived as challenging.
Within a week of the announcement of the latest semis contracts, Russian suppliers, specifically those from the Black Sea Basin, wasted no time in making additional volumes available. This rapid response has injected a new dynamic into the market, characterized by intermittent transactions.
The pricing landscape is proving to be a puzzle for market participants. For March shipments, Black Sea Basin suppliers are maintaining their offers at $515-520 per ton FOB, a pricing level that remains flat with the previous week.
In contrast, Turkish customers are expressing their latest price ideas at $535-540 per ton CFR, revealing a notable disparity between the offers from Russian suppliers and the expectations of Turkish buyers. This pricing inconsistency is contributing to the overall uncertainty in the market as participants navigate the intricacies of these divergent figures.
Adding to the complexity is the lack of information about billet offers from CIS suppliers to Türkiye. While negotiations are underway, concrete information is scant, with discussions predominantly focused on establishing feasible prices.
Some customers have received offers for Russian billet with a March shipment date at $550 per ton CIF. Notably, these offers surpass the prices quoted by Black Sea suppliers at $530 per ton FOB. The variance in these figures underscores the fluid and uncertain nature of the current market conditions.
As the industry anticipates further developments, it is clear that the Russian billet market is undergoing a period of transition marked by swift supplier action, pricing perplexities, and negotiations for feasible terms. Market participants are closely monitoring the evolving landscape, hoping for greater clarity and stability in the near future.
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