Issue 08, 2024 - This week's editorial: Black Sea billet prices under pressure, scrap looks down

China's weakening pricing situation after the Lunar New Year, combined with March-production availability from Russian producers amid stagnant activity in foreign markets, is exerting pressure on Russian billet prices.

At the same time, the cost of procuring scrap is supporting billet prices, according to Russian supply-side sources.

Some sources report that March production is available and some producers are expected to have to make transactions during the current week, as February approaches its end. Other sources declare early- and mid-April production availability.

“The market appears to be stagnant with no visible activity. Customers in Turkey are indicating they have either already fulfilled their needs or are not showing any response at all,” a supply source says. “But the cost of collection of scrap is not allowing billet prices to go down.”

“It seems there is a common economic crisis. There are no bids from Turkey. As we previously sold large volumes to Egypt, there is a decision not to offer in the Egyptian market for a while,” a trading source says.

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