Russian billet exporters struggle to hold price levels

Russian billet suppliers are facing sustained pressure from a strong rouble and weak demand, compounded by the seasonal slowdown in the domestic market and harsh winter conditions, market participants inform Kallanish.

Cold weather is further weighing on construction activity in several major consuming markets.

Some market participants expect demand to recover only after Ramadan.

Despite Russian sellers insisting on $460-465/tonne cfr Türkiye, bids from this destination market are not exceeding $455/t cfr, according to several sources.

On Wednesday, Turkish benchmark mill Kardemir decreased its billet prices by $5/t to $495/t for 150mm S235JR-grade billet and $505/t for B420 grade, compared with its previous sales on 7 January (see separate story).

A trading source notes that stock clearance by Kardemir is adding to market uncertainty, adding that with Turkish rebar prices at $550-570/t and sections at $565-590/t, “Kardemir is right to create pressure given such finished steel levels”.

Russian billet from a major supplier has meanwhile been sold in volume to Türkiye at close to $440/t fob Novorossiysk, a trading source says. Other Russian mills are reported to have either concluded sales or withdrawn from the export market, citing minimum workable levels of $445-450/t fob that buyers are not yet ready to meet, according to the same source.

Source:Kallanish