Despite some sizeable restocking done last week, some rebar producers in Saudi Arabia remain interested in billet imports. Even though prices from both Turkey and the CIS are foreseen to rise this week backed by stronger scrap prices, billet offers from abroad remain more attractive compared to the local offer prices in Saudi Arabia.
Last week, two large billet lots were sold to Saudi Arabia. As SteelOrbis reported earlier, a Turkish steel producer agreed to supply 50,000 mt at $395/mt FOB or at slightly above $420/mt CFR. The deal was done through a trader. Another 50,000 mt batch was booked by another mill from the CIS at slightly below $420/mt CFR for March shipment, sources mention.
Although import offers are expected to increase this week by around $5-10/mt supported by rising scrap prices in Turkey, they still may be considered acceptable by billet buyers in Saudi Arabia. Local billet offers in the Kingdom are at $450-460/mt CPT, SteelOrbis has learned.