Russian billet suppliers have been compelled to lower their offer prices due to the abundance of Turkish domestic billet availability and competition from alternative origins. This move comes as a result of weak demand for finished steel in both domestic and export markets, leading to a softening of scrap import values in Turkey, according to market participants.
While there is demand for Russian-origin billet in Turkey, Russian suppliers did not accept bids at $515/tonne cfr Turkish Black Sea ports. The latest workable prices for Russian billet in Turkey are reported to be around $510-515/tonne cfr, down from previous levels of $520-525/tonne cfr.
The decline in Russian billet prices can be attributed to the combination of softening scrap import values in Turkey and the availability of competitive billet from domestic Turkish suppliers and alternative origins. Turkish mills have been offering domestic billet at around $520-525/tonne ex-works, putting pressure on import prices.
Furthermore, the weak demand for finished steel products in both the domestic Russian market and export destinations has contributed to the oversupply situation, forcing Russian exporters to adjust their prices downward to remain competitive.
As the market dynamics continue to evolve, Russian billet suppliers are closely monitoring the situation and adapting their pricing strategies to maintain their presence in the Turkish market and other export destinations.
