Slow domestic business for rebar and wire rod in the GCC region, but mainly in the UAE and Oman, have continued to put pressure on workable square billet offers.
In the UAE, the latest workable rebar price levels have decreased by AED 200/mt ($54/mt) since late July to AED 2,200-2,250/mt ($600-613/mt) CPT with 90-day letter of credit (LC). Some of the suppliers have been selling rebar at AED 2,230-2,270/mt ($608-619/mt) ex-works, LC at sight. The billet prices in the UAE have decreased over the same period by $20/mt for ex-Iran material to $530/mt CFR and by $10/mt for ex-Oman and ex-Bahrain lots to $560/mt CPT. Moreover, some buyers have been saying that another $10/mt discount may be possible from Iran.
In the wire rod segment, according to sources, Qatar Steel and Emirates Steel Industries (ESI) are now ready to deal at $650/mt ex-works, while earlier levels around $10/mt higher were reported. In the meantime, United Steel Company, based in Fujairah, has been targeting $670/mt ex-works for wire rod. However, the supplier is mainly focused on export negotiations. Particularly, in July USC shipped one cargo to Africa and one to Europe, SteelOrbis has learned.
Meanwhile, since the end of July rebar prices in Oman have declined by OMR 5-8/mt ($13-21/mt) to OMR 242-245/mt ($629-637/mt) delivered levels in the latest transactions.
In the billet export segment, the latest deal was closed by a Bahraini supplier at $540/mt FOB in the second half of July, equal to $605/mt CFR Turkey. Currently, such a level is not workable in any of the global markets, since prices have decreased substantially since then. “They caught an opportunity and sold to Turkey, while Russian billet over there was more expensive,” a market source said.
