GCC local and export billet prices rise, reflecting global uptrend

Tuesday, 08 March 2022 15:14:03 (GMT+3)   |   Istanbul
       

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Ex-Iran billet offers to the GCC market were standing at $670-690/mt CFR a couple days ago, but now the Iranians have withdrawn the offers and will most probably aim for much higher prices, given the current mood in the market.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.


Similar articles

Turkey’s Kardemir issues planned sales volumes for April-June

22 Mar | Steel News

Iran’s steel exports up 7.6 percent in first 11 months of Iranian year

20 Mar | Steel News

Ex-Turkey official merchant bar prices soften

01 Mar | Longs and Billet

Ex-China billet most competitive in SE Asian billet market amid lower futures prices

22 Feb | Longs and Billet

Italy’s Feralpi Group to meet construction sector’s carbon-reduced rebar demand

20 Feb | Steel News

Local Indian rebar trade prices improve slightly, but fundamentals still negative

20 Feb | Longs and Billet

India’s RINL floats export tender for 15,000 mt of rebar for April delivery

20 Feb | Longs and Billet

India’s RINL floats export tender for 30,000 mt of billet

20 Feb | Longs and Billet

China comes back from long holiday with mixed signals

19 Feb | Flats and Slab

Billet offers in SE Asia limited, fall of around $5-10/mt expected from next week

15 Feb | Longs and Billet