Billet trade in the GCC has been quiet lately, following several large import deals concluded in Saudi Arabia. Currently, import offers from Asia are considered to be on the high side and the negotiations are slow amid the approaching holidays in China and the Ramadan period in the Middle East. In the meantime, domestic billet availability in the UAE and Oman in particular is somewhat limited due to the active sales of high-priced rebar in the region.
The latest domestic billet prices in Oman and offers to the UAE have stood at $515/mt CPT for February-March production, but the supplier, according to sources, has stepped back from active offering. In Saudi Arabia, the latest local billet price has been reported at around SAR 1,900/mt or $506/mt CPT, up slightly over the past two weeks.
In the import segment, the latest offers for billet from Asia for April shipments have been at $475/mt CFR Saudi Arabia and $473-475/mt CFR Oman and the UAE. The levels are in theory workable against high local prices for rebar, but neither side is in a rush to enter negotiations.
Iran has resumed its billet export presence, though the domestic political situation still remains tense. The general range of prices is at $395-420/mt FOB depending on the mill and its production route, the size of the order, the lead time and cargo readiness. In the GCC, the offers are at $445-450/mt CFR with little interest seen even though the prices are attractive. “The UAE can’t really buy from Iran or let’s say it is harder to hide due to The Emirates Conformity Assessment Scheme (ECAS). In Oman, as I assume in some other countries, buyers fear the cargoes will be not delivered or severely delayed due to the ongoing crisis,” a producer from the GCC told SteelOrbis.
Aside from the GCC, some activity has been reported in Asia in terms of Iranian billet. Last week, according to sources, a 40,000 mt lot was booked at $448/mt CFR, while the latest deal has been closed for a combination of slab and billet (30,000 mt and 20,000 mt) with the billet priced at $440-445/mt CFR. In these deals, the ex-Iran FOB-based price level is estimated at $405-413/mt FOB or maybe slightly higher depending on the freight rate.