Algerian steel producer Algerian Qatari Steel (AQS) reopened its billet import tender on January 26 after having revoked the previous one due to uncertain trader regulations in Algeria. In addition, AQS is in the market for a sizeable lot of cold directly-reduced iron (CDRI).
The company is seeking to buy 20,000 mt of wire rod grade billet for shipment in the second half of February. In particular, AQS is aiming to pay nothing above $440/mt CFR for the specifically required quality. Previously, the company opened a tender for the same product and volume in early December. Later, the tender was cancelled as there was a possibility that Algeria would ban CFR-based steel imports. As of now, according to the latest information, FOB-based operations should be preferred, while CFR-based operations are optional but not forbidden, as SteelOrbis reported earlier.
In addition to billet, AQS needs to restock with some raw materials. The 2.5 million mt per year DRI-module start-up has been delayed for around two months from now due to some technical reasons, while the company’s 1.1 million mt per year EAF is operational. Therefore, currently the company is willing to buy 30,000 mt of CDRI for March shipment, SteelOrbis has learned.