In the GCC, where domestic rebar demand and pricing have been at rather high levels in most markets, regional billet offer prices have also been set at high levels, and, moreover, some sources report that allocation generally is somewhat limited, especially in the UAE. Another reason is that the geopolitical tension in the region creates negative expectations and additionally limits the billet allocation in the Gulf. As a result, interest in billet imports from Asia has been strong lately, particularly from Saudi Arabia.
Since mid-January, Saudi Arabia has booked two billet cargoes from China, via traders, for April shipment, consisting of 50,000 mt each, while both deals have been closed at $475/mt CFR, SteelOrbis has learned. The workable price has increased by $10/mt compared to the previous import deal, again for Chinese billet, closed earlier in January at $465/mt CFR, for 50,000 mt. The latest offers from Asia to Saudi Arabia have been standing at $475-480/mt CFR, while Indonesian billet is estimated at around $485/mt CFR or slightly above, depending on the port of discharge.
Local billet and scrap prices in Saudi Arabia have remained stable at SAR 1,900/mt) CPT or $507/mt CPT and at SAR 1,375/mt ($367/mt) CPT, respectively. However, the local market leader Hadeed has recently increased its rebar price by SAR 70/mt($19/mt) to SAR 2,260/mt ($603/mt) CPT.
An Omani billet supplier is in the market with $515/mt CPT billet offers to Omani and the UAE buyers, stable over the past week but up $25/mt from the previous round of sales. The supplier is not in a rush to sell, given the higher rebar prices in the UAE market and a certain lack of billet supply. As SteelOrbis reported earlier, Emirati-based Emsteel is now offering at AED 2,644/mt ($702/mt) ex-works officially, while Omani rebar is now offered to the UAE at around AED 2,440/mt ($665/mt) CPT, up by AED 15-20//mt in general over the past week. Import offers from Asia to the UAE and Oman are estimated at $477-485/mt CFR and slightly higher, all for April shipments.
The ex-China billet reference price is stable this week at $435-440/mt FOB with offers being at the higher end of the range, while some traders are still asking for $445/mt FOB. But the tradable level is not above $435/mt FOB, sources said. “Nothing has changed much for Chinese billet, and I would say that, with lower raw material prices, buyers can get small discounts on offers,” an Asian trader said. The Indonesian mill has kept its April shipment billet offers at $450/mt FOB early this week.
$1 = SAR 3.75
$1 = AED 3.37