Posted on 05 Jan 2023
The Oman and United Arab Emirates local billet markets are stable, but imported billet offers have increased in the new year's first week. In UAE, direct reduced iron and domestic scrap prices, as well as imported billet offers have increased slightly, Kallanish notes.
DRI prices increased in the merchant market and sellers elevated their offers to $377-380/tonne ex-works. DRI producers’ primary benchmark, the pellet premium, has decreased to $52/t, valid in the first quarter of 2023, from $75/t in Q4 2022. Notably, 65% Fe iron ore prices increased gradually in December.
This week in UAE, a re-roller, out of its 20,000-25,000-tonne enquiry floated last week, concluded a billet deal for 10,000t at $525/t cpt for prompt shipment.
UAE's largest-capacity induction furnace mill is still targeting $550/t ex-works, but buyers' bids are lower. The unconventional billet supplier is negotiating for billet sales, targeting $540/t ex-works, but the buyer is trying to conclude at $525/t. So far, $535/t ex-works is the lowest the seller is prepared to go.
This week, scrap has gained nearly $3-9/t on last week's quotes. HMS 90:10 grade scrap is offered at AED 1,260-1,280/t ($343-349), HMS 80:20 at AED 1,240/t ($338) and irregular rebar scrap – the best quality known in the market – sourced from mills at AED 1,350/t. Values are all delivered to buyer's yard and against cash payment.
In Oman, an electric arc furnace-route billet producer, negotiating with a buyer in UAE, offered at $340/t ex-works but the buyer found it unworkable.
"The demand is there, but buyers' bids are low. The domestic rebar market expects good offtake in January, and rebar prices increased by $25/t on an ex-works basis versus December," comments a sell-side source. "However, when negotiating the purchase of feedstock, they [billet buyers] are negotiating around the same price as in December. I hope they won't regret lowering bid this week because next week they may not find these prices."
The Oman and United Arab Emirates local billet markets are stable, but imported billet offers have increased in the new year's first week. In UAE, direct reduced iron and domestic scrap prices, as well as imported billet offers have increased slightly, Kallanish notes.
DRI prices increased in the merchant market and sellers elevated their offers to $377-380/tonne ex-works. DRI producers’ primary benchmark, the pellet premium, has decreased to $52/t, valid in the first quarter of 2023, from $75/t in Q4 2022. Notably, 65% Fe iron ore prices increased gradually in December.
This week in UAE, a re-roller, out of its 20,000-25,000-tonne enquiry floated last week, concluded a billet deal for 10,000t at $525/t cpt for prompt shipment.
UAE's largest-capacity induction furnace mill is still targeting $550/t ex-works, but buyers' bids are lower. The unconventional billet supplier is negotiating for billet sales, targeting $540/t ex-works, but the buyer is trying to conclude at $525/t. So far, $535/t ex-works is the lowest the seller is prepared to go.
This week, scrap has gained nearly $3-9/t on last week's quotes. HMS 90:10 grade scrap is offered at AED 1,260-1,280/t ($343-349), HMS 80:20 at AED 1,240/t ($338) and irregular rebar scrap – the best quality known in the market – sourced from mills at AED 1,350/t. Values are all delivered to buyer's yard and against cash payment.
In Oman, an electric arc furnace-route billet producer, negotiating with a buyer in UAE, offered at $340/t ex-works but the buyer found it unworkable.
"The demand is there, but buyers' bids are low. The domestic rebar market expects good offtake in January, and rebar prices increased by $25/t on an ex-works basis versus December," comments a sell-side source. "However, when negotiating the purchase of feedstock, they [billet buyers] are negotiating around the same price as in December. I hope they won't regret lowering bid this week because next week they may not find these prices."
Source:Kallanish
