Although the spread of Covid-19 has affected the longs demand and supply balance in the Gulf Cooperation Council (GCC) and disturbed the billet trade as expected, some business activity has still been seen.
In the UAE, some demand has been seen despite some shutdowns and production suspensions on the longs side. One re-roller, according to sources, has purchased 10,000 mt of billet from Oman at $355/mt CFR. Another producer is evaluating offers, aiming to book at $5/mt lower than that. In the meantime, ex-CIS billet has been on offer through a trader at $355/mt CFR, while ex-India billet has been available within $350-360/mt CFR, depending on the shipment terms. In addition, some billet offers have been heard from Saudi Arabia and Bahrain at $360-370/mt delivered to the UAE, with not much interest seen, taking into account the UAE’s restrictions on land transportation.
Some interest in billet imports exists in Saudi Arabia, with mills currently watching the situation and pricing. One of them is in the market to purchase 50,000 mt, but is unwilling to pay over $350/mt CFR, SteelOrbis understands. Another buyer has not yet placed a solid inquiry and prefers to evaluate the offers coming from Turkey and the CIS. According to sources, $360/mt CFR has been the lowest price voiced by now, and so no deals have been reported.
