Although overall global demand for billet is not exactly robust, US billet prices--mostly destined for export--have become quite competitive in the world market. US billet producers are currently offering for around $495/mt FOB mill, although some offers have been heard as high as $550/mt FOB mill. But the low end just edges out other foreign offerings, such as Russian billet available for around $500/mt FOB mill. However, Mexican billet offers have been heard at around the same level as US product, gaining mild interest of US long product mills.
It's no secret that some US mills import billet from Mexico to convert into wire rod, but lately sources have indicated that there has not been much profit in the process lately with US billet offers nipping at the Mexican mills' heels. As such, purchasing activity from Mexico is tepid for the moment; but if US billet prices follow the recent scrap trends and rise soon, inquiries to Mexico could reignite.