While the billet market in the UAE remains dominated by supply coming from Iran, especially due to lower offers volumes from Oman, Saudi Arabia-based buyers are paying more attention to ex-Asia offers.
In the UAE, import offers from Iran have been reported at $490-500/mt CFR depending on the buyer and the volume, down by around $10/mt since earlier in November. Offers from Oman are not present in the UAE since the largest supplier is more or less sold out. “If Oman was in the market, it probably would be selling at $550/mt ex-works/CPT,” a source told SteelOrbis.
In Saudi Arabia, billet offers from Indonesia for 30,000-40,000 mt have been coming this week at $535-538/mt CFR, while Vietnam has been offering at $525/mt CFR, SteelOrbis has learned. No fresh deals have been reported, although the level of around $520/mt CFR is considered workable. The previous deals were closed in October at up to $560-565/mt CFR. At the beginning of the current month, the lowest offers were coming from China at $515/mt CFR, but these were later withdrawn.
Ex-Asia offers are also heard in the UAE, at $530-535/mt CFR from Indonesia. However, this level, coupled with the longer lead time, is not workable for buyers. “Iran is still the key as it is the lowest price in the UAE and the fastest delivery. Saudi cannot work with Iran and so Asia is a good option. The prices are good for Saudi Arabia too as their local rebar offers leave good room for margins,” a trader commented to SteelOrbis.