Turkish billet customers estimate the maximum they can pay for Russian billet is around $500 per tonne cfr Turkey, although they may bid lower after making substantial purchases from Asia and China. Recent deals for China-origin billet were reported at $480-485 per tonne cfr Turkey, according to market participants.
A trader noted that "Russian billet suppliers might get a maximum of $500 per tonne cfr Turkey if they are lucky and can ensure quick delivery.
" This price indication arises from the recent sizable transactions involving China-origin billet.Consequently, the price for Russian-origin billet has decreased to $485 per tonne fob Black Sea, down from $490 per tonne fob.There is uncertainty regarding the potential increase in tonnages offered by mills in the Russian-occupied Ukrainian territories of Lugansk and Donetsk (LNR/DPR) due to a suspension of export duties.
The trader commented that if these mills can secure good local and CIS sales, they may offer only limited quantities to Turkey.
The Russian government has temporarily exempted products from the Lugansk and Donetsk People's Republics from export duties until December 31. This exemption applies to 900,000 tonnes of iron or non-alloy steel semi-finished products, 16,000 tonnes of ferrosilicon, and 200,000 tonnes of coke products. From September 1 to December 31, zero export duty will also apply to 80,000 tonnes of pig iron and 184,000 tonnes of wire rod produced in these regions.
