Billet spot premiums deteriorate further across the board; various suppliers seen long on billet. Signed Q3 premium contracts below Q2.

European spot billet premiums decline further with several confirmed spot transactions recently taking place at $370 and $380 per mton in Southern Europe. A Tier 1 European supplier still holds some inventories it had accumulated in recent months that it has been unable to sell in their entirety. Similarly, an important Tier 2 supplier seems to also be long, with plenty of available billet units capable of delivering them short term (within a week or two) without any major issues. Meanwhile, Q3 contract have been signed lower than Q2 deals.

More details in full report.