The billet trade in the local markets of the Gulf Cooperation Council (GCC) region remains slow, mainly due to the subdued demand for the long products. However, exports remain a strong option for the large producers, therefore they set the domestic prices in line with their overseas offers.
Buyers from the UAE have been receiving $650/mt CPT offers from a large Omani mill and $630/mt CPT from the smaller ones, in line with the levels seen in early September. Offers from Saudi Arabia are at $650-655/mt CPT, while Bahrain is not quoting for the domestic markets nowadays, SteelOrbis has learned. Local UAE-based small producer is at $625/mt ex-works. In the meantime, some of the buyers are eager to pay $620-630/mt CPT for high-quality billets.
Billet imports are not considered as an option for restocking in the GCC. First of all, the freights from Asia are at $65-70/mt and, secondly, the suppliers, from India specifically, are naturally focused on billet sales to China.
China is considered as a solid export possibility for the GCC-based large producers themselves. An Omani mill traded one lot to China at $720/mt CFR around 10 days ago and is now evaluating further sales prospects. The exporters from the GCC count on selling at $715-725/mt CFR in the coming round with the freight estimated at around $60/mt to China.