- Key importers face sluggish construction activity
- Global steel oversupply weighs on Russian prices
Mysteel: Export prices of Russian steel products continued to fall in August, under pressure from rising sea freight costs and weak global demand.
According to Russia’s rating agency Rusmet, by mid-August, the cost of steel billets in Black Sea ports fell to $440-445/tonne (t) (FOB), reaching its lowest levels since late 2022 to early 2023. And analysts allow for a further decline in prices to $429-430/t.
The negative dynamics are due to a reduction in construction activity in key importing countries, including Turkey, which leads to a decrease in orders for rolled products and an increase in the supply of Russian metal.
Pressure on Russian steel prices is increasing due to the ongoing oversupply in the global steel market. According to experts, the key consumers of Russian blanks remain Turkey, North African countries, and the Middle East, where interest remains, provided that logistics costs are competitive.
During periods of reduced freight, supplies to Southeast Asian countries may increase, but competition with Indian and Iranian producers limits the expansion potential. Volatility in the semi-finished steel market is expected to persist in the second half of 2025 amid relatively high sea freight costs and geopolitical uncertainty.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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