Posted on 01 Aug 2024
Turkish billet customers estimate the maximum they can pay for Russian billet is around $500/tonne cfr Turkey, though they may bid lower after already making substantial purchases from Asia and China. The most recent deals concluded from the latter origin were reported at $480-485/t cfr Turkey, market participants inform Kallanish.
“Russian billet suppliers might get a maximum of $500/t cfr Turkey if they are lucky and can ensure quick delivery,” a trader says.
This nominal price indication is based on the reports of deals for sizable lots of China-origin billet at $480-485/t cfr Turkey.
As a result, Russian-origin billet was at $485/t fob Black Sea, down from $490/t fob.
The jury is meanwhile out on the potential for increased tonnages being offered by mills based in the Russian-occupied Ukrainian territories of Lugansk and Donetsk (LNR/DPR) amid their export duty suspension. “If they [LNR/DPR-based mills] can make good local and CIS sales, they may only offer a little to Turkey,” the same trader opines.
The Russian government has temporarily exempted products from the so-called Lugansk and Donetsk People's Republics from export duties until 31 December. This applies to 900,000 tonnes of iron or non-alloy steel semi-finished products, 16,000t of ferrosilicon, and 200,000t of coke products. From 1 September to 31 December, zero export duty will apply to 80,000t of pig iron and 184,000t of wire rod produced in these regions.
Source:Kallanish
