Billet prices in the Gulf Cooperation Council (GCC) region have surged locally over the past two weeks due to higher rebar offers and the uptrend in the global market seen in mid-May. However, now when prices in China have been falling sharply, billet exports from the GCC are questionable and mills have concentrated on domestic sales.
In the UAE, according to sources, a medium-sized lot has been booked at $735/mt ex-works. Offers from Oman have been heard at $730-750/mt CPT locally and at $750-780/mt CPT to the UAE, up by at least $50/mt since early May. In the meantime, offers from Saudi Arabia have been reported at $750/mt CPT UAE, up from $715/mt CPT a week ago. “Bahrain is to announce prices later as they will be able to offer only for July,” a buyer told SteelOrbis.
Iran remains one of the key regional sources of billet for the UAE. According to sources, a few traders are offering $710/mt CFR for ex-Iran billet this week, while the latest booking is said to have been closed at $690/mt FOB BIK Port for 30,000 mt with the freight to the UAE estimated at $20-25/mt. The previous tender was closed at $30/mt lower.
In the import segment, there are offers from Asian countries. In particular, an ex-India offer through a trader has been placed at $660/mt FOB or $700/mt CFR. In addition, ex-Indonesia billet has been available this week again from trading companies at $700/mt CFR, SteelOrbis has learned. “Iranian and domestic material is preferred due to the shorter lead time as compared to Asia,” a source said. Offers from the CIS are not considered workable in the GCC even though they declined last week. The delivered indication is evaluated at not less than $740-745/mt CFR taking into account high freight rates. Moreover, some sellers are still aiming to sell at higher levels.
In the export segment, business has slowed down significantly with bids from China having dropped by over $100/mt within the past 10 days. Currently, the maximum workable level in China is estimated at $650/mt CFR with an average of $45/mt.