Posted on 05 Jun 2025
Apart from the looming Eid holiday in the Muslim world weighing on activity, weak demand and expectations of further price declines, particularly in China and Southeast Asia, continue to make buyers of Russian billet cautious, market participants inform Kallanish.
The strength of the Russian rouble makes the domestic market more appealing for suppliers during the peak construction season. “With the rouble-dollar rate at 79/1, no one wants to export. Export volumes have dropped,” a market source comments.
Meanwhile, a Turkish mill based in Izmir booked 50,000 tonnes of Chinese-origin billet at $450-452/tonne cfr.
In Turkey, demand for Russian billet remained limited. “Turkey can pay a maximum of $450/t cfr Marmara and $453/t cfr Turkish Black Sea,” one trader notes. However, some Turkish buyers are pushing for even lower levels, reportedly targeting $445/t cfr Marmara for Russian-origin billet. “They just want to stay on the safe side,” the trader explains.
For sales to Egypt, two sources cite workable levels in the range of $457-465/t cfr. “Egyptians can pay a maximum of $465/t cfr, but ... it’s not easy to sell to them,” the same trader says.
A Russian producer observes: “Right now, bids for Egypt are at around $440/t fob [Black Sea], but with the rouble where it is now, everyone’s quiet. Turkish buyers are bidding at $435/t fob.”
Another producer notes that, for now, the domestic market takes priority. “We’re waiting either for a stronger dollar or an increase in international billet prices [before resuming exports]. We can wait as long as needed,” he comments. “Currently, we are selling everything within Russia. We use pig iron internally and also sell it domestically, where buyers are offering slightly below $350/t fob. But for exports to make sense, we need at least $420/t fob.”
As for finished steel, “I heard Novostal sold wire rod at $500/t fob and rebar at $520/t fob to Israel,” a market source says.
Source:Kallanish
