Taking account of the changing market conditions, Fastmarkets looks into the opportunities and threats that will define the CIS export billet market in 2020.
Growing steel demand in Russia
In total, Russian and Ukrainan billet producers exported 4.25 million tonnes of products in January-August 2019, against 4.86 million tonnes in the corresponding period of 2018, according to the International Steel Statistics Bureau (ISSB).
The drop was mainly a consequence of lower export sales from Russia. These totaled only 2.51 million tonnes over the first eight months of 2019 compared with 3.07 million tonnes in 2018.
Because of the unfavorable pricing conditions in the external markets, particularly in the third quarter of 2019, as well as growing demand in their domestic market, Russian producers reallocated their billet volumes to cover the needs of their local customers.
Fastmarkets’ steel billet index, export, fob Black Sea, CIS, averaged $396.40...