Iran remains the main square billet import source for the longs producers in the GCC region, taking into account geographical proximity, while sellers from the distant markets are hardly competitive due to high freight rates, particularly for small and medium-sized lots. In the meantime, the prices for ex-Iran billet have been falling in Turkey due to the generally negative market sentiment and low demand in the longs segment.
According to sources, the latest offers for ex-Iran square billet in the GCC region have been set at $490-500/mt delivered, down $20/mt from two weeks ago. A small cargo has been traded at the lower end of the range to a rebar producer, while some market players report there has been a sale of 20,000 mt of Iranian billet to the region at close to $480/mt CFR. “These [tonnages] can be re-sold by a trader, so the actual price for the buyers will be $10-12/mt higher,” a producer told SteelOrbis.
Taking into account the decrease in billet offers from Iran, the prices from other GCC region-based suppliers are hardly workable. UAE-based customers reported there were offers from Oman at $560-570/mt CPT, which they do not consider acceptable.