European spot premiums decline continues as oversupply bites. Some billet secondary spot offered below $400 per mton

European billet market oversupply continues to pressure down spot premiums with several extruders staying on the sidelines and only buying in the spot market at the last minute after comparing multiple offers that seem to get lower week after week. Meanwhile, the ongoing decline in spot billet premiums seems to have started to impact some Q2 contracts that were signed in early mating season at higher premium levels as we can confirm some extruders have effectively asked to re-negotiate Q2 contractual premiums at lower levels. As previously communicated, regional spot and quarterly billet premiums are expected to remain under pressure in the coming weeks.

More details in full report.