Square billet prices in the Gulf Cooperation Council (GCC) region have been rolled back in early September, following the upturn seen in the middle of the previous month. The main reason is that workable price levels were pulled down by some rather aggressive offers for ex-Iran billet. In addition, although longs demand in the region has improved slightly, sellers have still found it challenging to increase the workable price levels for rebar and wire rod.
In early September, ex-Iran square billet offers have been reported at $510-520/mt CFR, down from $530/mt CFR indicated by traders in the second half of August. Recently, a 9,000 mt billet cargo of Iranian origin has been booked to the UAE at $515/mt CPT for material available at port. Another UAE-based buyer received $510/mt CPT for the same product, SteelOrbis has learned. “This is a ready cargo in the port, a part of an earlier booked cargo of 21,000 mt brought from Iran,” a source said. In such a situation, ex-Oman offers have also softened by $20/mt over the past two weeks to $530-540/mt CPT UAE depending on the steel grade.