Square billet prices have moved up in the UAE in the past two weeks, mainly on the back of the rebound seen in the global market. The buyers are not in a rush to accept the higher levels, amid the expectations of the weaker market in China and the anticipated rebar price move from the local producer Emirates Steel Arkan (ESA).
In the UAE, billet prices from Iran have increased by around $15-20/mt over the past two weeks to $510/mt CFR or around $520-530/mt CPT, SteelOrbis has learned. Some market sources report there are certain billet supply issues in Iran, related to weather conditions and consequent limitations of local gas distribution, which have even forced some mills to suspend production.
In the local market in the UAE, offers are at $540/mt ex-works, while in Oman one of the main suppliers is offering at $550/mt ex-works.
As for the import offers from distant markets, no firm indications have been reported from Asia, though the estimations are at $580-585/mt CFR levels. Algerian billet is evaluated at around $585/mt CFR, taking into account the mill’s ongoing negotiations with traders. Most of ex-Asia billet suppliers are not offering firmly to Turkey, only Malaysia has been heard in the market with $590/mt CFR level. Offers for ex-Russia origin should be at least $10-20/mt lower than that, in order to be attractive, given the increased risks cooperation with Russia entails. Around two weeks back, the import offers in the GCC were mainly at $530-535/mt CFR from Asia and at around $540-550/mt CFR from Algeria.
