The end of May holidays has brought no positive change to CIS billet exporters and they had to return to the market amid extremely adverse conditions. While they were staying on the sidelines, the downward trend has only become stronger amid prices for Turkish and South European longs and semis falling continuously.
CIS producers, which intended to start offering June production at $580-590/t fob in late April, have already announced lower levels of $560-580/t fob but customers consider these prices still too high.
Traders report they were able to buy square billet from IUD at $550/t fob and from Novorosmetall – at $560/t fob a week ago, and in view of the current situation they are bidding at no higher than $520-530/t fob. However, the producers reject these levels.
Currently, IUD, Mechel and Evraz Group remain quiet hoping end-users will run out of stocks soon and will resume purchases. Yet, re-rollers stay out of the market so far expecting the prices will keep sinking because Turkish longs producers continue to insist on scrap price reductions and not in vain.
( source: metalexpert-group.com)