The billet and longs market in the Gulf Cooperation Council (GCC) region has finally seen the effects of the global steel and raw materials supply issues linked to the war carried out by Russia against Ukraine. Although the producers in the GCC are not dependent on ex-CIS billet specifically, they have still reflected the global price increase for semis and longs in their own prices. In addition, exporters from the GCC region may be able to further improve their positions
Offers from Oman to the UAE were reported at $770/mt CPT earlier, but the most recent levels have been at $800/mt CPT, sources say. “The buyers are there, which means sentiment is high and rebar is likely to cross $1,000/mt,” a source said. In the local UAE market, billet offers have been voiced at $810-815/mt ex-works, but just as a price idea.
Ex-Iran billet offers to the GCC market were standing at $670-690/mt CFR a couple days ago, but now the Iranians have withdrawn the offers and will most probably aim for much higher prices, given the current mood in the market. Another issue is that some market players expect Russia to sell its billet and maybe other products through Iran and even as Iranian origin material in order to bypass sanctions. “It will be sold as Iranian billet and of course at lower prices. They will take the billet to Astrakhan port and then to Iran,” a UAE-based producer told SteelOrbis.
As regards exports, GCC-based billet producers have a good chance to strengthen their positions, given the missing volumes from Ukraine and serious issues regarding working with Russia. Lack of supply and the uncertainty in the market have resulted in the export prices increasing to $840-860/mt FOB from Oman. Qatar was offering at $800-810/mt FOB, but the mill is tо revise its prices upwards again. Such levels may be accepted in Turkey, where close to 100,000 mt were sold today at $880-885/mt ex-works, and maybe in North Africa. Billet pricing in Asia is not yet high enough, hovering at around $725-750/mt CFR, as per the SteelOrbis reference price.