Although both shredded and HMS scrap prices registered a strong uptick in December, US domestic billet prices only increased marginally as a result, by about $10-$15/mt ($9-$14/nt), due to slow buying activity throughout the month. However, billet availability is already tightening in the New Year, and sources tell SteelOrbis that prices will closely follow the expected uptrend in scrap prices this month. In the next few weeks, therefore, US domestic billet prices could very well be in the range of $630-$650/mt ($572-$590/nt) ex-mill, depending on the extent of the scrap increase for both grades used in billet.
Even though US billet mills are reportedly getting busier, there has not been much impetus for US buyers to look to imports for billet supply; prices from offshore sources such as Turkey are prohibitively high, and even closer-to-home sources such as Mexico are currently offering billet at about $660/mt ($599/nt) delivered into the US. US export billet activity, on the other hand, is still strong, with significant US billet tonnage going to Latin America since December.