US billet prices have increased approximately $60/mt this month along with scrap, though demand and purchasing activity remain slow.
After US shredded scrap’s price increase of approximately $60/long ton in the beginning of December, US billet prices have gone up by around the same amount. Domestic billet prices are now ranging from $455 to $465/mt. With the expectation of upward price movement for certain domestic finished products and continued price increases for domestic scrap in January, the pricing trend for US billet is moving upward as well.
However, due largely to seasonal factors, actual demand for billet is slowing down as is purchasing activity. US re-rollers have begun to shut down for the holidays and domestic mills will shut down for the holidays as well; therefore, the market is not in a hurry to buy billet now. Market sources mention that US re-rollers will slightly increase their billet purchasing for February tons when they return to the market in January.
As for the international market, billet prices have also gone up due to the scrap price increase, though international billet demand is still weak. CIS producers are now offering billet offers to no lower than $415 to 420/mt FOB, while Turkey’s billet prices are at the level of $435 to 440/mt FOB.
The total amount of billet imports into the US in November 2009 was 11,588 mt, representing a decrease of 12,407 mt from October. The main countries that exported billet to the US during November were: Mexico, at 5,197 mt; Canada, at 3,495 mt; and Brazil, at 2,680 mt. Other countries that also exported billet to the US in smaller amounts during the period were the United Kingdom and Italy.
On the other hand, the amount of US carbon billet exported in October (November data is not available yet) declined to 10,001 mt, reflecting a major decrease of 23,514 mt when compared to September. Taiwan, Mexico, and Canada were the main US billet export destinations, importing 6,315 mt, 2,225 mt, and 1,429 mt of carbon billet from the US in October respectively.