Russian steel mills raise steel billet prices due to exchange rate fluctuations and rising transportation costs

Recently, due to the decline in the exchange rate of the Russian A387 Grade 21 steel ruble against the US dollar and the increase in transportation costs, Russian steel mills have raised the price of steel billets by $5-10 to $440-445 FOB Black Sea. According to feedback from some exporters in the local market, the exchange rate of the Russian currency against the US dollar was 91.03 rubles on Monday, compared to 96.99 rubles a week ago. The decline in the exchange rate, coupled with the current increase in transportation costs, has led steel mills to raise prices to maintain a balance between supply and demand costs.

As of press time, the Russian ruble exchange rate has slightly risen to 91.43. The ruble's strength last week was mainly due to Putin's phone call with Trump, followed by a slight weakening on Monday of this week. It is reported that on February 18 today, officials from Russia and the United States will hold talks in Riyadh, the Saudi capital, on the restoration of Russian American relations and the Russia-Ukraine A387 Grade 21 steel conflict. At present, the exchange rate of the US dollar against the ruble is still volatile.

The increase in steel billet prices by Russian steel mills has not yet been accepted by the domestic market and overseas buyers, and no relevant transaction information has been heard yet. Some buyers in Türkiye think that the price is about 425 dollars, while Egyptian buyers think that about 435 dollars may be purchased A387 Grade 21 steel. But at present, because the demand for finished products in these two places is relatively low, the willingness to purchase is relatively low. Most buyers are also waiting to see whether there is any change in the market after the current talks between Russia and the United States.