Russian billet suppliers are resisting accepting low bids, pointing to their limited billet export allocation amid rising rebar prices in Russia as the construction season approaches, and billet export prospects in North Africa, market participants inform Kallanish.

Billet suppliers have maintained their offers at $520/tonne fob Black Sea. Considering the continued drop in scrap prices as well as the recent decrease in Turkish flagship mill Kardemir’s billet price to $565/t ex-works, Turkish buyers were bidding at $520/t cfr Turkish Black Sea ports for Russian-origin billet. However, those bids did not receive a positive response from Russian mills, who were trying to achieve higher prices, offering at $535-545/t cfr Turkey. The workable level was at around $525-535/t cfr Turkey, according to market participants.

Russian suppliers reported demand in Egypt and Morocco; however, workable price levels varied. Some supply-side sources estimate them to be at around $555/t cfr, while others suggest the range of $535-540/t cfr.

As a result, Russian billet was assessed on Friday at $500-510/t fob Black Sea, widening down from $510/t fob last Monday and $500-519/t fob a week earlier.

Interestingly, after Kardemir's sales at $565/t ex-works on Wednesday, no offers below $580/t ex-works were available on Friday from Turkey’s domestic mills. This situation provided a glimmer of hope for Russian suppliers.

Russian wire rod for export was heard on offer at $560/t fob Black Sea, but bids were not exceeding $530-540/t fob.