Last week billet prices inched up slightly to $520/tonne fob Black Sea, returning to the peak level registered during April-June. The second quarter was a volatile period overall for billet prices, with ups and downs registered. The recovery seen during the last week of the quarter could give some slight hope however to a very uncertain market going forward.

Traders in the billet sector remain wary due to the many uncertainties surrounding the global market for the product. These include the recent correction in scrap values and the weakness of Chinese finished steel prices despite stable iron ore levels. “We’re kind of stuck a little bit,” a European billet trader says. “China has come off a little which is scary, and there’s lack of clarity over Iran.”

Turkish scrap inched down slightly last week and mills mentioned the possibility of reducing production due to a fall in rebar demand from the international market.