Russian billet exporters have failed to achieve price increases despite previous hopes that Turkish scrap prices would prove support. In fact, deal prices have been reported at almost the same level which were seen as workable in late November. The higher price levels in sales are only possible for tonnages for prompt shipment, of which there is a shortage in Turkey.
A contract for a sizable volume of at least 15,000-20,000 mt is reported to have been done by a major Russian supplier at $458/mt CFR in Turkey, translating to $438/mt FOB or below. The material is for end-of-January shipment or even slightly later. This means that, in reality, there is no rebound in trade prices for Russian exporters as other markets except Turkey are silent. But some Russians sellers prefer to stay out of the market as their previous targets for January shipment allocation were equivalent up to $445/mt FOB, which is completely unworkable in the current market conditions.
The exchange rate of the Russian ruble fluctuates at around $1 = RUB 79-80 since December 11, which is better than the lows seen in early December (when the exchange rate fell to $1= RUB 75 the negotiations almost stopped). However, it is still at the same level as in the second half of November.
Another deal for 5,000-10,000 mt of Russian billet was done at $466/mt CFR last week, but the higher price is entirely due to the prompt shipment, which will be carried out this month.
The SteelOrbis reference price for ex-Russia billet has settled at $438/mt FOB Black Sea, down by $2/mt from the previous day.