Saudi Arabia active in import billet deals

Rebar producers from Saudi Arabia have been in the market to import billet for May shipment with some transactions already closed and new sizeable orders being placed. The workable price level has decreased significantly, following deteriorating business conditions in the scrap and semis segments as well as lower rebar trade in Saudi Arabia itself.

One rebar manufacturer in Saudi Arabia has purchased 40,000 mt of square billet ex-CIS at $350/mt FOB for high-manganese products with the delivered price estimated at around $380/mt CFR or slightly below. Another buyer is in the market for up to 40,000 mt of billet, seeking to buy within $370-375/mt CFR, SteelOrbis understands. The third billet importer in Saudi Arabia is out of the market, expecting earlier booked cargoes to arrive.

Ex-CIS billet suppliers have a great chance to sell to Saudi Arabia as the workable level for their billet is currently estimated at no higher than $340-345/mt FOB base. In the meantime, Turkey, despite the reduction in its export billet prices to around $355-365/mt FOB or by $25-30/mt over the past week, may not be able to attract buyers. According to sources, offers for ex-Turkey billet to Saudi Arabia have been voiced at $380-390/mt CFR.