Posted on 18 May 2023
Saudi Arabian induction furnace-route merchant billet producer Al Qaryan Steel has concluded three billet deals destined for Jordan and Bahrain.
Dammam-based Al Qaryan concluded 4,000 tonnes of 130mm 3sp billet at $515/tonne delivered to Bahrain and same-specification material at $527/t delivered to two buyers in Jordan: one parcel for 1,000t and the other 2,000t. All sales are on letter of credit at sight basis; prices exclude clearance and customs duty if applicable. Shipments are scheduled to start this week.
Saudi merchant billet producers are quoting 130mm 4sp billet in the domestic market at SAR 1,800/t ($480) in Jeddah and at SAR 1,850-1,875/t ($493-500) in Riyadh and Dammam, all ex-mill. Payments are against LC at sight.
This week, delivered light scrap is at SAR 1,150/t and HMS 80:20 grade is at SAR 1,300/t in Jeddah and Riyadh.
"Scrap demand is too low in Dammam and almost all offers dried out. I hear a few mills stopped buying scrap due to a cash deficit,” explains a senior mill official. "I expect a SAR 20-30/t decrease on scrap quotes by next week.”
Last week, Al Qaryan sold 130mm 3sp 8.7-meter-long billet at $515-520/t delivered to buyer's yard in United Arab Emirates for gradual shipment to be completed within May. The same re-roller in UAE previously bought 15,000-20,000t of billet from the Saudi mill in March (see Kallanish passim).
Source:Kallanish
