The logistics of transporting Kazakhstani linseed to Europe are becoming more complicated

Chinese buyers are offering at least $475/t for Kazakh linseed on a DAP Dostyk/Altynkol basis. Meanwhile, prices in other key markets have yet to fully take shape, with geopolitical and logistics factors continuing to create uncertainty, according to the Kazakhstan Flax Producers Association.

The European market remains relatively quiet. EU buyers continue to show interest in Kazakh linseed, but firm price offers have yet to emerge. At the same time, shipping the product to Europe is becoming more difficult and expensive.

One of the reasons is the redirection of Russian grain exports from the Azov-Black Sea region toward the Baltic. Northwestern rail routes and Baltic ports are expected to become increasingly congested with Russian grain, complicating logistics for Kazakh linseed. An alternative route through Belarus and Lithuania would be more expensive.

Additional pressure comes from higher tariffs imposed by major agricultural freight operators. Rising transportation costs are directly affecting export economics and could reduce the prices traders are willing to offer Kazakh producers.

At the same time, Russian linseed on an FCA basis is currently offered at significantly lower prices than Kazakh product, increasing competition in export markets. According to the association, despite the uncertainty, current demand and price indications still provide Kazakh producers with opportunities to sell available volumes at attractive prices.

Tags: China, Kazakhstan, Black Sea region, linseed, logistics