Ex-CIS billet prices expected to move downwards

Demand for CIS origin billet in the export markets has remained at low levels during the past week. Pressure on ex-CIS billet offers from buyers has increased in the same period amid the decreases seen in global scrap prices and due to the slackness of activity in the finished steel markets. Expectations of a further decline in ex-CIS billet prices have strengthened significantly and buyers are postponing their purchases in order to conclude deals at lower prices in the coming period. Meanwhile, CIS billet export offers have declined by $2.5/mt on average week on week to $250-260/mt FOB, for February production.