GCC region-based longs producers have been rather active in their exports in recent weeks, aiming to sell off excessive stocks while facing insufficient demand in the domestic market. In addition, business activity in the region is expected to slow down during the Ramadan period, which may be an additional reason to boost export sales for April shipments.
According to sources, the latest rebar sale was concluded for 25,000 mt from Oman to Singapore at $615/mt FOB on theoretical weight basis, which is around $645-650/mt CFR. In addition, as SteelOrbis reported earlier, a 50,000 mt rebar lot was booked from Saudi Arabia last week to Hong Kong at $613/mt FOB, which translates to around $650/mt CFR on actual weight basis. In early march, another Saudi-based producer traded a large lot at $575/mt FOB on theoretical weight basis.
Given the expected traditional slowdown during the Ramadan period, some more rebar cargoes may be sold from the GCC to Asia. However, the workable export prices are quite a bit lower than the official domestic offers. Particularly, the key Saudi Arabian supplier has just announced a price of $627/mt CPT, a $40/mt decline from the previous level. In the meantime, in the UAE the official price is at $727/mt ex-works. “I do not think that the UAE will sell for export. We have a stable 200,000-220,000 mt per month demand here,” a trader told SteelOrbis. In Oman, according to sources, the domestic rebar price from mills is at $735/mt ex-works.