LME steel billet prices

by amkotas

The current LME steel billet price is shown at $294/metric tonne. See http://www.lme.com/steel/latest_price.asp

Can the London Metal Exchange be correct about this? Other leading information sources such as Metal Bulletin show current ferrous scrap prices to be over $400 per metric tonne. Why should I pay $400 per tonne for my steel scrap if I can buy LME steel billet for under $300 a tonne?

Continuing with this apparent puzzle, other information providers show international steel billet prices at well over $500 per metric tonne. See steel billet prices on our own website for example; or visit other information sources. A differential of over $200 per tonne in the price of steel billet can make a massive difference in the viability of a steel project – so this is not a trivial matter in steel industry economics. 

All comments and suggestions are most welcome!