Q2 contract volumes still open expected to be closed mainly between $440-$480 per mton. Spot premiums decline across the board.
European Q2 billet contract negotiations continue, with most suppliers already closing the majority of their Q2 bookswhile some extruders in Italy, Poland, Spain and Portugal are still pushing to extend negotiations in an effort to obtain lower quarterly contract premiums.
Low premiums are being used as references in some countries as we hear from the trade that some Q2 offers as low as $430-$440 per mton in both Italy and Poland are being referenced by extruders in an effort to push other suppliers to follow thru. In fact, we can confirm these lower premium levels have produced some attractive offers from some Tier 2 suppliers closer to $450-$460 per mton to be rejected.
A Tier 2 supplier among the most aggressive marketers of billets in Italy. Our intel from the ground indicates a primary Tier 2 supplier that has been among the most aggressive in both Spain and Scandinavia seems to be also aggressively marketing its units in Italy, with offers as low as $440 per mton (even after considering its high logistics costs to get the metal there).
Major trader offering lower premiums in Portugal. More specifically, we can confirm a major trader has started to offer billet units from a Tier 2 off-shore supplier closer to $450 per mton in Portugal.