Gulf countries: Some demand, but supply is a problem
In the Gulf Cooperation Council (GCC) countries, the need for billets is pretty steady. However, there just isn’t enough billet available from local and nearby producers. This makes buyers turn to Asia, especially China, but shipping takes a long time and costs a lot, so it’s not the best choice.
In Saudi Arabia, demand is still strong even though the Hajj season is coming, which usually slows things down. This is because new factories have started producing steel. Buyers are talking with Chinese and nearby suppliers and expect to close deals soon. Chinese billet prices for August delivery at Yanbu port are now around $458/t, slightly lower than before. Inside Saudi Arabia, local billets from induction furnaces are being sold at SAR 1,950-2,100/t (about $520-560/t), but mills aren’t making much money from these prices. One trader said, “Rebar and billet prices are almost the same; I don’t think anyone is making a profit on domestic billets.”
In the UAE, demand has dropped a bit after several big orders were placed earlier. On top of that, the UAE government has changed the rules (ECAS) about which countries’ billets are allowed, causing confusion. Recently, Iran’s Isfahan Steel Company was removed from the approved list. A source said, “We’re tired of trying to figure this out.” Now, buyers are looking to Asia for billets, even though shipping is still a challenge. Chinese suppliers are offering billets for August at $460-465/t, slightly higher than before.
In Oman, trading is slow but steady. One trader is negotiating a deal to buy Iranian billets (130mm, grade 3sp) at $445/t delivered, which would be about $417/t FOB from Bandar Abbas, depending on shipping.
Türkiye: Buying from Asia at higher prices
In Türkiye, it's been heard that mills in the Marmara region, Samsun, İzmir, and İskenderun have bought billets from China and Southeast Asia in the past two weeks. Prices are around $460-470/t CIF Türkiye. Offers from Southeast Asia, including Malaysia, have gone up a little to $470/t CIF because of high demand. Chinese suppliers are also trying to push prices up due to strong interest from buyers.
Asia: High prices and too much export from China
In Asia, billet prices are going up, and this might push up the prices for finished long steel products too. But there’s a problem, China is exporting a lot of steel. In April, China exported more than 10.46 million tons of billets and other steel products, which is 13.4% more than last year. If this keeps up, it could flood the market and slow down price increases.
Slabs: Some big deals, but prices stay flat
The slab market is also busy. Two recent deals from Indonesia and Southeast Asia to the U.S. were done at $440/t FOB for 50,000 tons each. Russian slabs show a price difference: sanctioned slabs are selling for $450-455/t CFR Türkiye, while non-sanctioned ones are at $470-475/t CFR.
Slab prices from Southeast Asia have stayed the same, with a few small discounts because European demand is weak. Indonesian slabs for August are still offered at $440/t FOB. Some Asian slabs are even being sold to the U.S., but that’s not expected to become common because of U.S. tariffs.
Also, Vietnam's Formosa Ha Tinh signed a 50,000 tons deal with AM/NS India for June loading at $450/t FOB.
Comments
No comment yet.