GCC buyers focus on sourcing billet regionally

Friday, 22 January 2021 17:19:04 (GMT+3)   |   Istanbul
       

Longs producers in the Gulf Cooperation Council (GCC) countries remain focused on sourcing billet from regional suppliers. In particular, import offers from distant markets have not been considered workable for a while now. However, the situation may change, taking into account the sharp drop in the prices from CIS-based mills.

According to sources, an Omani producer has sold a total of 15,000 mt of billet to its local market at $600/mt ex-works, while another supplier from Oman has been offering billet to the UAE at $630-635/mt CPT, with no deals reported. A UAE-based wire rod producer has purchased a 8,000 mt lot from Bahrain at $615/mt CPT, SteelOrbis has learned. In mid-January, the price range of billet offers to the UAE was at $630-650/mt CPT.

Billet offers from across the sea also remain present in the market and are standing in a rather wide range of $590-610/mt delivered, depending on the supplier. However, according to sources, the latest deals have been closed at at least $15-20/mt lower than that.

The latest deals from the CIS were reported at the end of December when a Ukrainian mill sold 20,000 mt at $610/mt FOB or $655/mt CFR. Since then the prices from the CIS have dropped to $570-580/mt FOB and may decrease further. Accordingly, the CIS-based suppliers may again become competitive in sales to the GCC, to Saudi Arabia and the UAE specifically.


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