While billet prices continue to rise globally amid strong demand and support from raw materials, some billet buyers in the Gulf Cooperation Council (GCC) countries have preferred to restock locally. Moreover, active demand and the price uptrend in Asia have resulted in some large-scale sales from Oman and Bahrain.
In the local UAE market, billet offer prices have increased to around $475/mt CPT from both Oman and from a large local supplier. As a result, a total of 25,000 mt have recently been transacted at a slightly lower level for December production, SteelOrbis has learned.
As regards exports, according to sources, the most recent lot, for 30,000 mt, was sold from Bahrain to Asia at $460/mt FOB, while in mid-November the mill was selling large volumes at $430-435/mt FOB. In addition, a steel producer from Oman has sold a cargo to Asia at $445/mt FOB, sources say. Currently, mills report there are still buyers at $460/mt FOB, most probably meaning traders for Southeast Asia and China, SteelOrbis understands.