The situation on the consuming markets is forcing Ukrainian and Russian steel producers to further cut prices.
Global billet prices, under pressure from finished longs prices, have undergone a harrowing phase over the past 2 months. With the lack of demand and uncertainty, even notices that prices for billets have already crossed break even point are not clarifying further market movements. As per our sources, most of the producers are offering billets in range of USD 440 per tonne to USD 450 per tonne FOB Black Sea, but buyers are bidding at USD 420 per tonne to USD 430 per tonne.
Meantime, finished longs went down to USD 500 per tonne to USD 520 per tonne FOB Black Sea levels with rebars at USD 490 per tonne to USD 520 per tonne and wire rod at USD 510 per tonne to USD 540 per tonne.
Flats seem to be more stable, but we think that it is just a kind of too general view. Prices are discussible and producers are not giving proposals before knowing price idea from buyers. Generally, the Ukrainian HRC is USD 540 per tonne to USD 560 per tonne FOB but USD 520 per tonne to USD 530 per tonne seems to be discussible.
Lack of liquidity and devastated Chinese market has hardly any boding of an early revival. Moreover with European crisis having all the forebodings of a pandemic and ever diminishing Euro has left no speck of doubt about prolonged depression. Most of the mills have been scurrying for shelter by cutting down on production to the tune of 30%.
One can hope for baptism with the impending return of Turkish buyers in scrap market thereby infusing some life. Moreover with Ramadan round the corner it might just be possible that there is some revival in 2nd Week July.