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.