CIS mills are trying to slow down the decrease in export billet prices postponing offers of June production by at least one week. All of them firmly intend to stay above $600/t fob.
But in the current market situation the prices are unlikely to stay high. First, Turkish billet, which is traditionally offered by $15-20/t higher, is quoted at $600-605/t fob. Second, buyers of CIS billet are bidding at $580-585/t fob. Besides, traders are offering billet with immediate shipment at $570/t fob, down from $580-590/t fob a week ago.
Still, producers hope that Turkish mills will begin buying scrap after May holidays and this will stop price decreases in longs and semis sectors.