Posted on 20 Oct 2022
The Gulf Cooperation Council billet market is seeing prices soften. However, Iranian mills managed to elevate their billet prices during the latest round of sales, Kallanish notes.
In United Arab Emirates, induction furnace billet producers reduced their target prices this week to $520/tonne ex-mill from last week's $530-537/t ex-works. This is mainly due to the slow demand experienced each month before market maker Emirates Steel Arkan (ESA) announces its upcoming month's rebar prices, between the 23rd and 25th of the month. Also, an electric arc furnace-based unconventional billet supplier’s price at $520/t ex-mill has made merchant billet producers align with market sentiment.
On the other hand, in Iran, sole blast furnace-route long steel producer ESCO is heard to have concluded a billet deal at $480/t, and EAF-based Khouzestan Steel (KSC) at $477/t, both fob Bandar Abbas port. “Both mills resisted to sell higher than $470/t fob, and they managed finally,” comments an insider.
"I don't believe in the announced prices of the Iranian billet deals. They are not workable amid absent demand in the traditional markets of Iran - the Far East, Thailand and China,” comments an international billet trader familiar with the Iranian market.
Interest in Iranian billet has increased in the Turkish market, where it is offered at around $540/t cfr Turkish ports – the cheapest versus other import origins, including Russia, Indonesia and Malaysia.
Nevertheless, in UAE, Iranian billet offers are prevailing at $488-495/t cfr UAE ports for November deliveries. Iranian 150mm 3sp, 12m long (SAE1018) billet stored in a free zone, ready to be dispatched, is offered at $503-505/t delivered to buyer's yard in UAE.
In Oman, buyers are observing an increase in Iranian billet quotes by $15/t to $515/t delivered to buyer's yard.
Source:Kallanish
