GCC billet prices move down further due to low trade in longs market

Thursday, 04 August 2022 17:20:54 (GMT+3)   |   Istanbul
       

Slow domestic business for rebar and wire rod in the GCC region, but mainly in the UAE and Oman, have continued to put pressure on workable square billet offers.

In the UAE, the latest workable rebar price levels have decreased by AED 200/mt ($54/mt) since late July to AED 2,200-2,250/mt ($600-613/mt) CPT with 90-day letter of credit (LC). Some of the suppliers have been selling rebar at AED 2,230-2,270/mt ($608-619/mt) ex-works, LC at sight. The billet prices in the UAE have decreased over the same period by $20/mt for ex-Iran material to $530/mt CFR and by $10/mt for ex-Oman and ex-Bahrain lots to $560/mt CPT. Moreover, some buyers have been saying that another $10/mt discount may be possible from Iran.

In the wire rod segment, according to sources, Qatar Steel and Emirates Steel Industries (ESI) are now ready to deal at $650/mt ex-works, while earlier levels around $10/mt higher were reported. In the meantime, United Steel Company, based in Fujairah, has been targeting $670/mt ex-works for wire rod. However, the supplier is mainly focused on export negotiations. Particularly, in July USC shipped one cargo to Africa and one to Europe, SteelOrbis has learned.

Meanwhile, since the end of July rebar prices in Oman have declined by OMR 5-8/mt ($13-21/mt) to OMR 242-245/mt ($629-637/mt) delivered levels in the latest transactions.

In the billet export segment, the latest deal was closed by a Bahraini supplier at $540/mt FOB in the second half of July, equal to $605/mt CFR Turkey. Currently, such a level is not workable in any of the global markets, since prices have decreased substantially since then. “They caught an opportunity and sold to Turkey, while Russian billet over there was more expensive,” a market source said.


Similar articles

Turkey’s Kaptan Demir Celik produces first wire rod at new mill

04 Sep | Steel News

UAE billet market improves in line with more positive longs trade

23 Feb | Longs and Billet

Wire rod prices in SE Asia rise amid billet increases, uptrend in China

13 Jan | Longs and Billet

El Marakby at IREPAS: Egypt’s steel export volumes to remain firm in 2022

10 Oct | Steel News

Turkey’s Ekinciler gets environmental approval for capacity increase project

15 Sep | Steel News

IREPAS: Global long products market in a “dramatic situation”

09 Sep | Steel News

Iran’s semi-finished steel exports up 17.6 percent in Q1

05 Aug | Steel News

Turkey’s Yeşilyurt Metallurgy begins wire rod production

13 Jul | Steel News

Turkey’s Kardemir Çelik Sanayi commence billet production at new plant

17 May | Steel News

Turkey’s DTS Filyos to build EAF stainless steel plant project

03 Feb | Steel News