While billet trade inside of the Gulf Cooperation Council (GCC) region has been moderate and mainly dependent on the situation in the rebar segment, the mills in the region have become more active in exports. The activity of China and higher iron ore prices have created a positive environment for cooperation.
In the UAE, domestic billet prices have been set at $410-415/mt CPT with around 20,000 mt reportedly sold at the lower end of the range. Import offers for Indian origin billet have been reported at $410-415/mt CFR, while ex-CIS billet has been priced at close to $420-425/mt CFR for Septmeber shipments. “Here, everyone is waiting for Emirates Steel Industries to announce its rebar price and is hoping for it to be at least stable,” a source told SteelOrbis.
No offers from Oman to the GCC region have been heard as the supplier has been focusing on export sales rather than domestic sales. A deal for 30,000 mt was closed to $413/mt CFR to China, though some sources claimed the price was $2-3/mt higher. Moreover, according to sources, a seller from Bahrain is in the market with another 30,000 mt lot, aiming to sell at around $390-400/mt FOB.
Buyers from Saudi Arabia have decided to take a step back and to evaluate market developments as the number of offers from the CIS has been almost zero lately. Mills are offering not less than $375/mt FOB for export, which would mean close to $410/mt CFR Saudi Arabia with the increased freights. “We have good stocks for now. There is no rush to buy right now,” a producer told SteelOrbis.