Algeria, which had spent several years for building up its steelmaking industry almost from scratch, is becoming a major player in the region in terms semis and longs sales. In the billet segment, Algeria is currently the only supplier of “clean” origin, as Ukraine has largely stopped selling after the invasion of its country by Russia, while Russian origin billet is considered toxic due to sanctions.
Algerian Qatari Steel (AQS), which is one of the two large steel producers in the country, actively entered the export market last week and has sold heavily since then, especially in the billet segment. According to sources, since last week AQS has traded a total of 150,000 mt of square billet to several traders as position cargoes and the tonnages are believed to be destined for Turkey, Egypt, Libya and Europe, in particular Italy. The deal prices last week varied depending on the tonnage and were mainly within $501-510/mt FOB for November-December shipment. Slightly lower levels were also possible for large lots.
However, this week market sentiment has improved and AQS managed to increase its workable billet price, having traded 30,000 mt at $517/mt FOB, most probably to be further sold by the trader to the Egyptian market or Turkey, as SteelOrbis understands.
In the longs segment, AQS has also been selling wire rod to traders - at least up to 25,000 mt in total within around $565-580/mt FOB depending on the tonnage and the destination.
Currently, AQS is in the market inviting buyers to deal at $510/mt FOB for billet, $575/mt FOB for wire rod and $565/mt FOB for rebar. It is noteworthy that, in order to spur longs sales, the company insists on an option for any customer which books billet to also purchase rebar or wire rod to the amount of one third of the ordered billet tonnage.
