The square billet suppliers in the UAE have been making attempts to increase their prices for local customers, citing better domestic demand and the recent positive trend of finished steel and raw material prices. However, Emirati buyers have not fully supported such a trend.
The latest billet offers for Iranian origin in the UAE have been reported at $550-565/mt CFR which is around $565-580/mt delivered to buyer. In the previous week, there were attempts to get up to $570-590/mt CPT, taking into account rising scrap prices and better domestic demand for rebar. Some of the sources reported the CFR prices for ex-Iran position cargoes at $590/mt CFR, which makes over $600/mt CPT and is not considered workable.
Currently, the workable rebar and wire rod prices in the UAE are standing at $640/mt CPT and $650/mt CPT, which is acceptable for producers, but results in pressure on billet, taking into account current rolling costs.
In the import segment of the UAE, Iranian billet remains a priority due to the competitive price. However, Omani suppliers might get some demand as some of them have been offering $570-575/mt CPT to the UAE. In the meantime, the domestic billet price in the UAE is at $560/mt ex-works, stable over the past week.
The export prices, targeted for ex-UAE billet, are at $600/mt FOB, following some sales to distant markets at $580-590/mt FOB for 100 mm x 1,000 mm material, the market sources reported.