The downtrend of ex-CIS steel billet prices of the past six weeks still continues. Last week, traders' ex-Black Sea steel billet offers were standing at $575/mt FOB, while their offers to Turkey were at $590-595/mt CFR Marmara Sea ports. Also last week, CIS producers' steel billet prices were expected to indicate a further softening. Factors such as the stagnancy in the market, weakening scrap prices and the instability in the world economy all increased the possibility of a further softening in ex-CIS billet prices.
Turning to the current week, SteelOrbis has learned that a steel billet transaction between a producer and a trader has been concluded at $565-570/mt FOB Black Sea. As of today, May 25, although CIS producers' steel billet offers are standing at the price range of $570-580/mt FOB, it is heard that these producers are ready to sell material below this price range in the event of firm bids being placed for large volumes.
It is almost impossible for now to predict when and at which price level the softening of ex-CIS billet prices will come to a halt. CIS billet offers are now very close to this year's lowest price level of $560-570/mt FOB and it is thought that, if prices do indeed decline to this range, they may then remain at this level for a while.
By using SteelOrbis Steel Reference Prices, you can view weekly price changes since 2005 of major steel products in leading markets, and you can follow steel market trends closely by viewing how steel markets react to changes in economy via comparative price graphs.