Subdued trading activities in the rebar and wire rod market in the Gulf Cooperation Council (GCC) countries have resulted in weaker business for square billet too.
In the meantime, billet prices have not changed much over the past month. Two Omani mills are in the market with $665-670/mt CPT UAE offers, while the largest Oman-based producer is offering at around $695-700/mt CPT to some UAE-based customers. “Previously, there was no billet from their side due to an accident at a DRI unit and some scheduled maintenance. Now, they have repairs on the rolling side, and so they have billet to offer,” a source told SteelOrbis.
Billet prices from Iran, according to some buyers, have been set at rather high levels - $680-690/mt CPT. Accordingly, there are no takers for now. Similar levels have been heard from Bahrain, while no offers have been heard from Saudi Arabia.
The UAE’s interest in billet imports from distant locations has been minimal due to sky-high freight rates. CIS-based sellers are now at $650/mt FOB at the lowest, while the freight rate to the UAE for 40,000-50,000 mt cargoes is estimated at $60/mt minimum.