CIS mills continue to stay away from export billet and finished longs market in hopes that prices will touch bottom and bounce during this period of time and they will minimize their losses that way. Meanwhile, some suppliers of the Mediterranean region agree to slash prices, doing their best to sell the products. In particular, Metal Expert learns about sales of Greek and Turkish billet at $555-560/t fob and $560/t fob respectively. Market participants have also reported offers of Spanish billet at $560/t fob.
Although not all of foreign semis suppliers are ready to sell at these prices, the fact that such level exists affected the general mood amid low demand.
Besides, it has become traditional that CIS mills’ position is undermined by traders, especially those working at the Black Sea ports. They have started offering billet in the range of $550-565/t fob Black Sea, down by $5-15/t from a week ago. But producers states, that now it is not that important as traders don`t have such material to sell. CIS mills believe they will receive orders from them.
Traders at the Caspian Sea ports have been more loyal to the producerss and set the prices at $580-590/t fob. In the Far East, offers are coming only from trade branches of the Russian companies so the general position is more consolidated.
Taking into consideration all mentioned above, some producers have decided to reduce prices. Mills' prices have dropped in a week from $590-620/t fob to $575-600/t fob depending on destination.
Market operators have different opinions on further market developments. However, re-rollers buying billet from the Black Sea ports already consider the prices of $560/t fob workable. Some market participants are sure CIS billet prices will not drop lower than $550-560/t fob Black Sea. Given the domestic prices of re-rollers in Iran and SE Asia, billet quotations will have to fall to at least $570-580/t fob Caspian/Far East ports. But producers are more optimistic: they claim to receive bids at $580/t fob (in particular from Iranian buyers) and thus believe that can be minimum level. Now in the Black Sea ports, market players reported offers at $575/t fob and $580/t fob (Novorosmetal and Mechel respectively) in the middle of the week. Metal Expert also heard that Novorosmetal has already made a deal for its billet at $565/t fob, but could not get confirmation to this fact. However, most producers maintain the official levels at $600/t fob so far, but plan to return to the market next week with initial prices at $580-590/t fob.
In the Caspian ports, most mills are out of market with nominal prices at $580-600/t fob, which is also a reduction since week-ago prices were at $595-620/t fob. In particular, Kazakhstan’s Kasting opened sales today at $600/t fob ($590/t cpt).
CIS square billet at the Far Eastern ports have decreased to $590-595/t fob against $600/t fob a week earlier. Yet Asian re-rollers prefer to wait and see because some of them have yet to cut their prices for finished longs (in Vietnam in particular). In general, longs producers in SE Asia believe they will have to pay too much if they begin buying in а week or two.
Prices for finished longs of Ukrainian suppliers are looking too high against offers of other suppliers. According to market sources, Metinvest International S.A. has announced prices for June production of wire rod and rebar at $640-650 and $630-640/t fob Odessa, down from April quotations $675-680 and $670/t fob respectively. For comparison, Turkish wire rod is quoted at $640/t fob, rebar – at $620/t fob. ArcelorMittal Kriviy Rih is out of the market, which is implied by its rebar offers announced at the beginning if the week – $650-660/t fob. ArcelorMittal Kriviy Rih is expected to start active sales next week, traders report.
( source: metal expert- group.com)