Billet suppliers in the Gulf Cooperation Council (GCC) region have increased their prices by over $45-50/mt since early May, given the upturn in the raw materials segments and the general strong upward mood in the global billet market. China’s active stance in terms of imports provides billet suppliers worldwide with good options to sell large lots at high margins.
According to sources, ex-Oman billet prices for the UAE market have been set at $680/mt CPT for June deliveries, versus deals at $620-630/mt CPT closed for May. Offers from Saudi Arabia have been heard at $660-670/mt CPT, while the latest price idea from Iran has been reported at $700-705/mt CFR, though not workable for GCC buyers.
In the meantime, the export side has been active with deals heard mainly from Iran for now. One of the Iranian mills, as SteelOrbis reported earlier, succeeded in selling 30,000 mt at around $668/mt FOB BIK, up by $50/mt from the previous tender. According to some other sources, there has been a deal for Iranian origin billet to China at $715/mt CFR. “China has good potential to accept higher and higher prices, and I bet there will be limited tonnage to buy here locally in the GCC,” a trader said. The level of $715/mt CFR was reportedly traded to China by Oman last week, while the latest offers are at $800/mt CFR to China. The freight is estimated at around $40/mt, but depends on the tonnage.