CIS export markets continues downtrend movement this week reflects that the situation is getting serious. As per market reports most of the players, especially for longs, who remained out of the market and now, when the market situation is worsening, they have empty order books.
During the week, billets lost further USD 30 per tonne to USD 50 per tonne from the previously quoted levels. Producers were desperately trying to maintain the prices, but failed miserably in their attempt.
As per market information, sellers with previous offers at USD 520 per tonne to USD 530 per tonne FOB, with counter offers at USD 510 per tonne to USD 520 per tonne, have gone below USD 500 per tonne FOB levels.
The reaction for the trend will be production cuts. Incidentally, shipments in May for many suppliers have already dropped by 30% to 50% as compared to April.
On other side the good thing is that stocks are quite limited and if there will not be too pessimistic general background producers can rule the situation during next weeks, playing with market supplies level.