Posted on 10 Jul 2025
Gulf Cooperation Council billet import prices from the Far East have risen by $5-13/tonne over the past week. This has been driven by a rebound in semi-finished steel prices and a $2-3/t jump in insurance premiums for cargoes bound for Saudi Arabia’s west coast via the Red Sea.
The uptick follows heightened geopolitical tensions, as the Houthi threat has been renewed in the region, Kallanish reports.
This week, offers for ex-China 150mm 4sp billet (0.6% manganese) have been heard at $460/t cfr Jebel Ali (liner out) and $462-465/t cfr Saudi Arabian west coast for cargoes of at least 30,000 tonnes. However, sentiment across Southeast Asia, Turkey, and the Middle East remains bearish, with no visible buying interest.
“The lagging demand in all billet export destinations will likely lead to a buildup in Chinese billet inventories, which could drive prices down in a week or ten days,” a senior trader notes.
Meanwhile, the Qatari major has begun negotiations for August-shipment billet, targeting $492-495/t cfr United Arab Emirates ports – Hamriyah, Abu Dhabi or Jebel Ali – for lots of 30,000t or more. This marks an increase from June deals concluded at $487-489/t cfr Abu Dhabi and Hamriyah for July deliveries.
In the spot market over the last week, 2,000t of 150mm 3sp billet were sold at $490/t delivered to a UAE re-roller. Another 5,000t were booked at $485/t delivered to Abu Dhabi for prompt shipment by a merchant billet producer.
In the scrap market, demand in India and Pakistan remains muted, while local UAE availability is strong and prices are relatively stable, with slight week-on-week increases for select grades. On a delivered and one-week paid basis (excluding 5% VAT), scrap prices are quoted as follows:
AED 850-900/t for LMS (light melting scrap)
AED 1,030-1,050/t for LMS 50:50 (mixed with HMS), up AED 30/t
AED 1,150-1,170/t ($313-319) for HMS 80:20
AED 1,190-1,200/t for HMS sheared and PNS
AED 1,220-1,240/t for processed PNS
AED 1,250-1,270/t for fabrication scrap (2x2 feet)
AED 1,280-1,300/t for end-cut scrap, up AED 10-20/t
Source:Kallanish
