Algerian Qatari Steel (AQS) has returned to the import billet market after a break of several months. The mill has opened a tender for 20,000 mt of square billet for wire rod production. AQS is looking to buy for shipment in the first half of January and to pay close to $390/mt FOB, SteelOrbis understands. The latest deals from the CIS to the Mediterranean were agreed on within $395-400/mt FOB from Turkey, at $400/mt FOB. In the meantime, the most recent transaction to Algeria has been reported at $421/mt CFR from Ukraine.
AQS had not bought billets for several months as its stock volumes were sufficient enough based on the mill’s production levels. The key reason for the move to buy billet is the satisfactory local demand for wire rod, sources say.
As SteelOrbis reported earlier, AQS is close to the completion of its steelmaking complex, which will make the company less dependent on billet imports. Currently, the 1.1 million mt per year electric arc furnace is undergoing hot trials, while wire rod grade billet production is expected by March. AQS operates 1.5 million mt per year rebar and 500,000 mt per year wire rod capacities.