Billet prices in the Gulf Cooperation Council (GCC) countries have increased over the past couple of weeks, though being driven more by the global uptrend in the raw material and steel markets rather than being supported by local demand for rebar. However, some trade has been done as buyers have needed to restock.
According to sources, an Omani steel producer has traded 25,000 mt billet within $425-430/mt CPT recently. The sales destination has not been disclosed by the time of publication, though it is assumed that the volume is divided between the UAE and Oman itself. Some market players believe that the sales price should have been lower as the workable level for rebar in the UAE is at $440-450/mt CPT. However, others believe that some buyers may have chosen to accept higher prices now for September deliveries amid the possibility that Emirates Steel Industries (ESI) will increase prices for that period, SteelOrbis understands.
UAE-based buyers continue to largely ignore supplies from distant overseas sources and prefer to book billet domestically. The latest local offers from Arabian Gulf Steel Industries (AGSI) have been set at $425/mt ex-works, versus $415/mt ex-works earlier, SteelOrbis has learned. ESI, however, according to sources, has been negotiating at $410/mt ex-works, while bids were closer to $405/mt ex-works.
Both Omani and Emirati integrated steel mills have been active in exports, to China specifically. Over the past couple of weeks, each of them sold at least one cargo at $413-415/mt CFR, while some say the volumes may have been bigger. Jindal Shadeed (Oman) plans to ship close to 100,000 mt of billet for August production to local and overseas customers.
In Saudi Arabia, no active buyers have been seen in the market after a 50,000 mt deal was closed at $402/mt CFR a few weeks back. The latest offers were at $418-420/mt CFR, but there are no takers at far above $405/mt CFR. However, the recent price increase in the local longs market by Hadeed may create some room for higher billet prices to be accepted in Saudi Arabia, SteelOrbis understands.