Italian domestic billet prices are softening by €10/tonne ($10.9/t) month-on-month in line with weakening long products prices and low demand in the country, market participants tell Kallanish.

Local material is now at €365/t delivered. October is expected to bring more price falls as the steel market remains difficult and expectations for the fourth quarter are negative. Italian billet is also being sold to Northern Africa at reduced prices compared to Q3, at between €350-355/t cfr, traders say.

Some sources believe that prices for domestic material will fall to €340/t delivered this month. Uncertainty in the market and falling CIS billet prices are also responsible for the slow sales activity, sources add.

CIS billet is at $350-355/t fob Black Sea while Southeast Asian purchases of CIS billets are taking place at around $400/t cfr (see Kallanish 30 September).