Russian billet exporters are exercising caution due to recent fluctuations in the rouble. The currency strengthened to 99.42 per dollar on December 7, after dropping to 110 in late November, its lowest level since the start of the Ukraine conflict. This volatility has made exporters wary of providing price indications, as a stronger rouble could limit their ability to reduce prices.
The recent sanctions targeting Russian banks, including Gazprombank, have contributed to the rouble’s instability. Exporters are closely monitoring the situation, especially with the central bank expected to raise interest rates on December 20. This leaves limited time to finalize deals before the winter holiday break, which starts around December 29. Normal activity is expected to resume after January 13, 2025.
In the market, Turkish customers recently sought prices of $450-455 per tonne cfr, while offers in Egypt were around $490 per tonne cfr. Russian-origin billet was assessed at $440-450 per tonne fob Black Sea, with wire rod available at $500-515 per tonne fob, depending on the producer and shipment terms.
