It is reported that steel billets prices at Black Sea went down by USD 30 per tonne to USD 40 per tonne during this week.
But major market players have described this movement as a continuous process signaling further weakening in coming times.
As per reports, the market quotes were stable during the early part of the week as producers were resisting reduction in prices, but by the end of the week signs of relenting started appearing.
The major reason for this trend is being attributed to the tendency of buyers staying away from committing purchases due to signs of negative trend thus adopting wait and watch policy.
We should not be surprised if buyers and traders ask for lower levels in coming week.
The negative trend in billet prices is mainly due to
1. Low demand from major consuming regions
2. Softening in global steel scrap levels
3. Chinese threat of surge in long product exports