Last week CIS billet prices remained stable again, confirming the global uncertainty for the future direction of steel prices. The latest measures aimed at reducing exports, both in China and Russia, are expected to support global prices in the near future, but other factors could limit the positive trend.

CIS billet exporters have closed July allocations with a series of sales, which went as low as $620/tonne fob Black Sea towards the end of last week. The planned export duty implementation on 1 August has not yet boosted Black Sea billet prices, as was expected by traders, but the rebound may happen soon.

Prices were declining gradually over the course of last week, starting with sales at $640/t fob Black Sea for Russian billet, and ending at $620/t fob for Ukrainian material. Demand declined considerably as buyers continued to digest the news, and there were no flash sales of billet similar to Russian hot rolled coil. Scrap-based producers, who would suffer most from the duties, were officially opposing their implementation and mulling their next steps.