Billet buyers in the United Arab Emirates (UAE) have been interested in imports as expected, since higher rebar prices have provided CIS-based sellers with the chance to restart sales. In addition, some demand has been seen in the UAE for billet from the wider Gulf Cooperation Council (GCC) region.
An ex-Ukraine 25,000 mt square billet cargo to be shipped in January has recently been booked to the UAE at slightly above $430/mt CFR, SteelOrbis has learned. Offers from Oman and Bahrain to the UAE were mainly reported earlier this week at $430-435/mt CPT for rebar grade and at $440-450/mt CPT for wire rod grade. However, domestic producer Emirates Steel Industries has sold 20,000 mt of billet this week at $430/mt ex-works for December-January shipments. In addition, there were some billet offers at $420/mt CPT to the UAE for billet originating “from across the sea”, a source said.
Some buyers from Saudi Arabia have also restarted inquiries after a long break. One of the mills is seeking to buy 45,000-50,000 mt of billet and is aiming to pay around $410/mt CFR, SteelOrbis has learned. However, as the CIS-based mills have already reached $390/mt FOB in deals, most of the key suppliers are reluctant to sell below this level. As a result, the estimated price from the CIS is around $420-425/mt CFR Saudi Arabia.