The recent price increase for December production rebar announced by Emirates Steel Industries (ESI) has improved sentiment in the billet sector in the Gulf Cooperation Council (GCC) region. Re-rollers have more room to secure some margins, while sellers are aiming to increase deal prices for December-January deliveries.
According to the market sources, ESI’s billet for December shipments is available this week for the buyers in the United Arab Emirates (UAE) at $430-435/mt CPT. In addition, local UAE-based producer Arabian Gulf Steel Industries is offering billet for December-January production at $435/mt ex-works. Offers from Omani producer Jindal Shadeed are reported in the UAE at as high as $450/mt CPT, for small lots for December production. In the meantime, Emirati buyers say that prices should be not higher than $425-430/mt CPT in order to be acceptable for purchase. Last month, billet prices in the UAE were mainly ranging within $410-420/mt CPT.
Higher rebar prices in the country might provide some room for billet imports from outside the region, SteelOrbis understands. Currently, the ex-CIS offers are at $380-385/mt FOB Black Sea, which is around $420-425/mt on CFR basis, sources estimate. As a result, some large lots might be booked shortly.
