CIS-based steel billet suppliers have been forced to cut prices this week in an effort to accelerate trading as sentiments in major sales destinations have been bearish. But customers have remained reluctant to purchase, which may put additional pressure on prices in the near future.
Offers from a number of major CIS-based mills have been at $390-395/mt FOB, down about $10/mt compared to last week. Some traders have been ready to negotiate at $385/mt FOB. Moreover, some Russian producers have already been offering at $380/mt FOB. But even this price level has been useless as regards reviving demand, because the sale implies nearly 100 percent advance payment.
“There are the ones [suppliers, who can] accept $382-384/mt FOB, but it is not working,” an international trader told SteelOrbis, adding that weak rebar sales for May are keeping customers away from billet imports for late April shipment. Rare bids for ex-CIS billet heard in the market have been at $370/mt FOB and below. An offer from the CIS to Europe has been heard at $395/mt CFR.
The SteelOrbis reference price for ex-CIS billet has lost $5/mt since last week, coming to $385-390/mt FOB.