Posted on 13 Jul 2023
The Omani and Emirati merchant billet producers have observed enquiries dry out. Imported and local billet prices are both sliding, notes Kallanish.
In Oman, the electric arc furnace-route merchant billet producer and country's benchmark mill is targeting August-readiness 150mm 3sp billet quotes at $520/tonne ex-mill and $525/t fob, respectively. Both mills have no July shipment availability. Iran-origin, August-delivery 150mm 3sp/modified billet is available at around $518-520/t delivered to buyer's yard.
Local merchant billet producers have yet to receive enquiries. Saudi induction furnace route, July-shipment 130mm 3sp/modified billet offers are at $520-522/t cpt, whilst Iranian 150mm 3sp is at $520/t cpt for August shipment. Rebar re-rollers who previously booked Omani EAF billet at $527-530/t are gradually receiving the ordered billet.
In United Arab Emirates, domestic scrap generation has been reduced by 25-30% on-month due to mills' low buying prices and seasonal factors. Domestic HMS 1/2 80:20 scrap is available this week at AED 1,065-1,080/t ($290-294) delivered. Despite the scrap export ban, containerised small scrap shipments are underway, destined for the Bangladesh and Pakistan markets. Indian Customs’ determination not to clear UAE-origin scrap has impacted scrap exports significantly from UAE.
In Bahrain, prompt-shipment offers of Saudi induction furnace 130mm 3sp billet are at $520/t cpt, whilst local EAF 150mm 3sp August-readiness material is at $520/t fob or delivered within the same city.
"Billet prices are tending to soften due to low global demand, oversupply and low-priced finished products [rebar and wire rod] availability," opines a senior mill official.
"Today, Egyptian rebar is offered at $565/t fob actual weight. 6.5mm+ diameter wire rod offers from Malaysia are at $550-555/t cfr GCC [Gulf Cooperation Council] ports, whereas Chinese are at $560/t cfr GCC ports. Looking at the finished products price tags, everybody is cautious in booking semis," he adds.
Source:Kallanish
