In April, export prices for Russian steel semi-finished products, including slabs and square billets, declined notably. Analysts from Metals & Mining Intelligence (MMI) cited by The Kommersant newspaper report drops of about 20% for slabs and around 5.5% for square billets, driven largely by softer demand for imports. This trend reflects a broader shift in global appetite for Russian semi-finished materials as buyers reassess supply options amid ongoing market adjustments and sanctions dynamics.
Specifically, the FOB Black Sea price for steel slabs slid to roughly $424 per metric ton, marking a 20% month-over-month decrease. During the week of April 17–24, the pace of decline accelerated to about 28%, attributed to a surge in slab supplies reaching Asian markets. Meanwhile, the price of square billets also eased, moving down by 5.5% to around $543 per metric ton over the same period. These movements illustrate a response across buyers and traders to shifting inventories, freight costs, and regional demand signals.
Beyond Russia, slab export prices were softening in several other regions as well, with notable effects in European and Asian markets. In late April, Chinese buyers faced CFR prices in the 460–470 range for slabs, down from roughly 470–480 a week earlier, while other Asian destinations reported prices in the 490–500 range. The pattern suggests a sustained global tilt toward lower price levels for semi-finished products, influenced by competitive supply and cautious consumer demand in key zones.
On April 25, RBC, citing Yakov and Partners analysts, noted that more than half of surveyed managers at Russian mining and metallurgical companies anticipate a technology gap with Western competitors within four to five years. A central factor behind this projected lag is anticipated difficulties in acquiring advanced equipment under continuing international sanctions and related export controls, potentially slowing modernization initiatives and capacity upgrades in the sector. This outlook underlines the tension between price movements in international markets and longer-term competitiveness considerations faced by domestic producers. [CITATION: MMI analysts, The Kommersant; Yakov and Partners]