The offer volumes of billets from Russia have been limited in recent weeks, due initially to insufficiently good prices but, this week after some rebound in prices, transportation issues at some Russian ports have become another factor preventing suppliers from increasing export allocation.
There have been shortages of vessels and delayed shipments of smaller billet lots from a number of Russian ports and, as a result, the number of offers from Russia have been limited. “There are no vessels from Rostov and Taganrog, so it is hard to offer even as bids increased,” one Russian seller said. “Rostov has problems with shipments as all are waiting for grain, plus the weather is bad with water level changes, so lots got stuck,” a trader said.
At the same time, there have been no disruptions in shipments from Novorossiysk, one of the major ports, even though one aerial drone attacked oil installations in the port of Novorossiysk on November 20. “If you are shipping from Novo [Novorossiysk], it is possible to find a vessel there for 10,000-20,000 mt,” a Russian source said.
According to market sources, one deal for ex-Russia billet from Novorossiysk port has been reported at $515/mt CFR Bartin. Market sources believe it was done early this week at the latest, as now bids have already been at $515-520/mt CFR. A large Russian mill has already been offering this week at $530/mt CFR to Turkey for end of December-January shipment.
The SteelOrbis reference price for ex-Russia billet has remained stable from yesterday at $485/mt FOB Black Sea.
