The market mood and expectations have worsened in the ex-CIS square billet market as buyers’ bids keep falling lower and lower.
The positions of sellers vary. Some CIS-based mills are still insisting on $390-395/mt FOB and above, though admitting the levels are no longer workable. In the meantime, market players say that only some producers can afford going down to $380/mt FOB and below, depending on the size of the available allocation. “The market is in a panic as if there is no demand at all, but it is being postponed,” a producer told SteelOrbis. “The Black Sea is not higher than $380/mt FOB today,” another mill commented.
As a result, foreign customers, who were previously aiming to book billet at $380-385/mt FOB, are now seeking prices $5-10/mt lower. “I think above $380/mt FOB can be sold today only if someone has a ready cargo and there is a buyer who needs such lot,” one trader believes. According to the sources, an ex-Russia 30,000 mt square billet cargo was recently booked at $378/mt FOB, while last week small lots were closed at around $380/mt FOB.