An influx of imported long products in the US has slowed down mill demand for billet in the last month, although prices have remained the same. Most US domestic billet prices still range between $630-$640/mt ($572-$581/nt) ex-mill, bolstered in part by a neutral-to-up trend in scrap prices. Additionally, despite the deluge of imported long products and increased availability of billet, demand for domestically-produced rebar and wire rod is relatively decent--especially compared to this time last year--and as such, billet demand is projected to remain stable to up in the coming months.
The recently loosened availability of billet has also increased export activity in the last month, with the Dominican Republic in particular showing strong demand for US billet. Import activity, on the other hand, remains lackluster at best--sources tell SteelOrbis that even the tight availability apparent in the market in early February did not inspire many US long product producers to look elsewhere for billet, with offer prices from Mexico up to $30/mt ($27/nt) higher, delivered to the US. Now that US mills have no problem securing billet for their production schedules, billet import activity in the next month should be virtually nonexistent.