Billet enquiries have been floated in the United Arab Emirates and Oman this week, with local producers in Oman adjusting production levels in response to increased electricity tariffs between 1 p.m. and 5 p.m. Despite this, prices remained flat, according to Kallanish observations.
In Oman, one re-roller placed an enquiry for 10,000 tonnes of 3sp modified billets for July delivery. In the UAE, re-rollers issued enquiries for over 30,000 tonnes.
In the UAE, a small package of 2,000 tonnes of induction furnace route rebar grade billet was sold this week at $535/t delivered for immediate delivery. Ex-Oman offers were heard at $540/t landed to the buyer's yard for July delivery.
Ex-Iran billet offers are being heard at $498-505/t cfr (liner out) GCC ports (Qatar, Kuwait, Oman, UAE) for July delivery. Last week, three separate deals were struck in Iran destined for the GCC market for a total of 72,000 tonnes at $480-482/t fob for July-mid and August deliveries, according to sources. Far East origin (Indonesia, Malaysia) 3sp and 3sp modified billet offers are at $525-530/t cfr (liner out) Jebel Ali for July shipment.
The major scrap consumers in the UAE are attempting to lower their purchase prices due to reduced exports to India and muted demand in Pakistan. Local scrap quotes this week are at AED 1,250-1,270/tonne ($340-346) for HMS 1/2 80:20, AED 1,310/t for HMS 1 90:10 - so-called Super HMS, AED 1,280-1,300/t for fabrication, and AED 1,375-1,400/t for rebar end-cut.
