Ruble Strengthens, Russian Mills Raise Export Offers

The recent rise in the ruble has revealed that Russian steel makers are trying to raise the export price of billets, and Russia's resource prices to Turkey are currently concentrated at US $ 610-630 / ton CFR. 50-80 USD / ton higher than last week. Acceptance of Turkish buyers is low.

Turkey, one of the major buyers of Russian resources, has been supporting Russia's rise in export prices, with domestic steel prices continuing to rise due to the recent rise in imported steel prices.

However, Turkish buyers are not currently accepting offers. It is still on vacation in Eid al-Adha, demand is low and Turkey expects a price of less than $ 600 / tcfr.

Egypt is another major buyer of Russian resources, but due to Egypt's recent vacation period, purchase demand is low and payment methods make later transactions difficult.

Related traders said strong rubles make it difficult for Russian steelworks to lower export prices, and steelworks may choose to focus on domestic sales or reduce production.

The current exchange rate is about 60 rubles per dollar, and sources say it needs to be at least 70 rubles per dollar for Turkish prices to be favorable to the factory.