Integrated mills in the Gulf Co-operation Council (GCC) region remain active in their attempts to sell billet abroad, at the same time easing the pressure on the local rebar markets. Demand in the region exists as well, taking into account that the offers from further abroad are not considered workable due to longer lead times.
Currently, UAE-based Emirates Steel Industries (ESI) is negotiating some billets to Southeast Asia at around $395-400/mt CFR. In addition, there are some inquiries coming again from China, which can be considered by the supplier as well. The latest deals from the region to China were closed around two weeks ago for up to 40,000 mt at $400-405/mt CFR or around $380/mt FOB, sources say. Current target prices of the GCC on exports, including the Qatari supplier, are at around $370-375/mt FOB for November shipments.
Within the region, offers from ESI are reported at $390/mt CPT to customers in the UAE and Oman, practically in line with the previous sales. However, buyers are looking to buy $10/mt below and so are not rushing. “They will buy billet to cover their rebar sales. So you need to see the price and tonnage that you sell to understand your billet requirement,” a local source said. It is worth mentioning that in the UAE around 15,000 mt have reportedly been booked at $375-380/mt ex-works. In addition, one of the buyers currently has a 25,000 mt cargo from abroad being discharged, which was booked around one and a half months ago, SteelOrbis understands.