The US billet market has remained slow so far this month, due to a lack of demand and sufficient supply.
Compared to September, there has not been significant improvement in the US billet market in October, attributed to continuous softening in the US wire rod market and a subsequent weakening in US demand for billet. Additionally, other factors such as the unstable economy, uncertain financial market and currency fluctuations have left re-rollers hesitant to purchase significant billet tonnage, as they are trying to maintain inventories at a comfortable level.
For now, US billet prices remain around the level of $675/mt. However, as the early anticipation for US shredded scrap prices is to go downward next month, market sources expect US billet prices will follow suit and come down as well.
According to the US Import Monitoring and Analysis System (SIMA), total billet imports into the US in September were 14,594 mt, reflecting a small increase of 737 mt from August. The primary sources of billet to the US during September were: as always, Mexico at the top of the list with 12,884 mt; Canada, at 777 mt; Japan, at 733 mt; and the United Kingdom, at 201 mt.
On the export market, the latest USITC data show that the total amount of US carbon billet exported in the month of August was 44,644 mt, which registers an increase of 12,068 mt from July. The main countries that imported US carbon billet in August were: Egypt, registering for the first time this year with 23,861 mt; Peru, at 7,587 mt; Colombia, at 4,984 mt; Dominican Republic, at 3,756 mt; and Canada, at 3,695 mt.