Trading in the United Arab Emirates (UAE) and Omani billet markets has been slow. Buyers fear the downward move from Emirates Steel Industries (ESI) for October; therefore target the lowest possible price to restock in billet. In the meantime, some sporadic activity was seen in exports.
In the UAE’s domestic market the square billet from Arabian Gulf Steel Industries is indicatively offered at $423/mt ex-works, but the level is seen as not workable. According to the market players, the regional origin of billet may be booked today at $410/mt CPT UAE, while latest transaction for 20,000 mt was closed from Oman at $420/mt CPT. However, some buyers reported $400/mt CPT might be also possible, but bids are coming to as low as $380-385/mt CPT, which is hardly achievable today.
While the domestic business activity is kind of on hold in Oman and the UAE, the mills have been targeting exports. Jindal Shadeed, according to the sources, has recently sold 20,000 mt of billet for Asia at $395/mt FOB, for October shipment. In addition, ESI was testing the market with levels at around $400-405/mt FOB last week, SteelOrbis has learned.
In the import segment, the pricing in the UAE and Omani markets is vague for now, with only a few indications heard. According to the sources, the CIS billet can be booked at $410/mt CFR while the lowest offers for Indian origin were reported at as low as $400/mt CFR. “Market is completely confused. No offer makes sense. Traders are shorting and mills are resisting,” a producer told SteelOrbis. More orders are expected soon from Saudi Arabia with the targeted price of $380-385/mt CFR, SteelOrbis understands. Last week a 50,000 mt lot was booked from Ukraine at $404/mt CFR to Jeddah area.
