Posted on 21 Sep 2023
The Gulf Cooperation Council billet market is stable. Merchant billet producers and integrated mills are awaiting United Arab Emirates benchmark mill Emirates Steel’s October-rolling rebar price announcement, which also influences the Omani rebar market, notes Kallanish.
Despite the export ban, UAE exports of containerised scrap have ramped up, and local scrap quotes have risen by AED 30-50/tonne ($8.1-13.6) on-week.
UAE, the region’s second-largest scrap producer, at almost 2 million tonnes/year, after Saudi Arabia at nearly 4.5m t/y, has been unable to fully stop scrap exports due to a lack of enforcement, monitoring and deterrence. This week, HMS 80:20 grade scrap is available domestically at AED 1,175-1,200/t and fabrication at AED 1,230-1,275/t, delivered and excluding 5% VAT. Market participants expect a further increase of AED 30-50/t on Thursday.
Ex-Oman electric arc furnace-route 130/150mm 3sp billet is offered at $525/t delivered to UAE, while ex-Iran is at $495-505/t cfr UAE ports. Meanwhile, local induction furnace mills in the UAE are targeting $525-530/t ex-works and holding offers until ESI announces the new rebar price. If October-delivery rebar prices inch up, merchant billet producers will reflect the increase in their tags this week.
An ex-Oman 130mm 3sp billet offer is heard at $535-540/t cfr Egypt, equating to $505-510/t ex-works.
One Kuwaiti mill was heard to have booked 130mm 4sp induction furnace-route billet from Saudi Arabia at around $540/t cpt Kuwait for a 2,000-tonne trial lot.
Iranian October-shipment EAF-route billet offers in the GCC are hovering at $470-475/t fob, equating to $495-500/t cfr Oman or UAE ports. "At September-end, electricity curtailment will be over in Iran, and semis supply will boost, with new export tenders to be launched in early October,” says a senior mill official.
Last week, ex-Iran 150mm 3sp billet was sold through a trading company at $498/t cfr Indonesia for over 20,000t.
Source:Kallanish
