In the GCC, billet trade has been mainly positive with some cargoes booked in the domestic market and on the import side. The relatively positive situation in China has been supporting the mood in the region, together with the decent sales of longs mainly in the UAE and Oman, while in Saudi Arabia demand has been a bit slower.
In Saudi Arabia, a 50,000 mt billet cargo was booked last week at $465/mt CFR Jeddah, while the initial offers stood at around $472-475/mt CFR at the end of December. The current level of billet offers from China to Saudi Arabia have been reported at $475-477/mt CFR, again mainly for March shipments. The previous deal from China to Saudi Arabia stood at $453/mt CFR in November.
Domestic billet prices in Saudi Arabia have increased over the past week by SAR 70-90/mt ($19-24/mt) to SAR 1,900/mt) CPT or $507/mt CPT, SteelOrbis has learned. In addition, the steel market leader in the Kingdom - Hadeed - has increased its purchase price for steel scrap by SAR 50/mt ($14/mt) to SAR 1,375/mt ($367/mt) CPT. Sources assumed that the producer needed to restock with scrap and increased the purchase price level in order to attract volumes.
In Oman and the UAE, import offers for Asian billet have been mainly reported at $472-475/mt CFR, more or less in line with the latest indications last year. While the import segment has been silent, a 20,000 mt sale from Oman to Emirati buyers was closed last week at $490/mt CPT. Previously, the supplier was aiming for $500/mt CPT. Currently, there are no firm offers for billet from Oman since it seems there is no volume for January.
Business with Iran, which was already troubled, is now even under more pressure, considering the ongoing protests in Iran over the rapidly worsening economic situation in country. Sources report there are offers for small lots at port at $394/mt FOB Bandar Abbas, and will most probably be offered to Africa. Some traders are also said to be offering $380/mt FOB for medium EAF billet lots. In the meantime, the main billet suppliers from Iran are targeting $410-420/mt FOB, which translates to around $445/mt CPT Oman and the Emirates, while some local market players have been reporting $460-465/mt CPT levels as offered by some traders. According to sources, Khouzestan Steel Company has recently finalized a tender for 50,000 mt of billet at $410/mt FOB for February shipment. The cargo will most probably be sold to Asian buyers, SteelOrbis considers.