Billet deal prices soften in UAE

Monday, 07 October 2019 14:57:45 (GMT+3)   |   Istanbul

The United Arab Emirates (UAE) has been rather active in billet trade last week with some deals closed within the region and some lots sold for export. The higher business activity in the billet segment is expected to somewhat ease the pressure on the rebar market, where demand is insufficient.

UAE-based Emirates Steel Industries (ESI) sold 30,000 mt of billet to Asia last week at $372/mt FOB for November shipment. In addition, it sold a further 20,000 mt locally at $390/mt CPT, down $10/mt since late September. Another UAE-based re-roller purchased at total of 15,000 mt of billet both locally and from Oman at $390-395/mt CPT, SteelOrbis has learned. In the meantime, the UAE’s interest in overseas billet is minimal due to longer lead times. Indicative offers to the UAE are reported at around $390-395/mt CFR for November shipments.

Higher trade activity in the billet segment might ease some pressure on the local rebar market in the UAE. “ESI alone sold at least 50,000-60,000 mt of billet, that means minus production for rebar,” a local source told SteelOrbis. It is worth mentioning that re-rollers are continuing negotiations with regional billet suppliers and have placed bids at $370-380/mt CPT.

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