Russian billet producers continue to face intense competition, particularly from aggressive Asian suppliers, as reported by Kallanish.

 In Egypt, the workable price for Russian-origin billet is estimated at around $500-505/tonne fob, while China/ASEAN-origin billet is available at $530/t cfr. Turkish mills have been experiencing difficulties in increasing steel sales both domestically and internationally. The significant bookings for ASEAN-origin goods before the new export duties came into effect on October 1 have led to a rush to export scrap cargoes from Russia, with several transactions heard concluded after Oct. 1, although deal details are kept confidential.

 The new 7% export duty on Russian scrap is not expected to have a significant impact on trade flows, as Russia had imposed a 5% export duty on scrap before. The rush to export is due to a government quota that is expiring by the end of the year, with suppliers eager to sell cargoes to meet the 2023 quota and ensure that the 2024 quota does not decrease. In the Asian steel market, the impact of Russia's increased duties on semi-finished products is expected to be limited, with a 1.5% increase in prices unlikely to make a significant difference to offers to key buyers of Russian billets. Chinese traders noted that while Russian billet material is offered at a competitive level in the Asian region, buyers still prefer Chinese cargoes.