Major billet producers in the United Arab Emirates have increased their rebar-grade 3sp billet prices, contrasting with falling rebar prices from May. The country's benchmark mill is targeting domestic billet sales at $550/tonne ex-works for June deliveries, while induction furnace-route producers raised their prices to $535/t ex-works, up from $525/t delivered in May.
Omani mills are offering 3sp billet at $520-525/t ex-mill, unchanged from the previous month. However, Iranian 150mm 3sp billet offers have risen slightly to $495-500/t cfr UAE ports due to higher marine insurance rates amid the conflict in Gaza.
The billet price increases come despite weak rebar demand in the UAE. Last week, the benchmark mill allowed buyers to book additional rebar quantities at discounted prices, limiting other suppliers to selling only 60-70% of their monthly volumes locally. Induction furnace-route billet producers have consequently lowered their rebar-grade billet target prices by $5-10/tonne on-month to $525/t delivered within the UAE.
Domestic scrap quotes in the UAE are trending upwards due to increased containerized exports to Bangladesh and Pakistan, despite the scrap export ban. The benchmark mill raised its scrap buying prices to AED 1,225/t ($334) for sheared, AED 1,275/t ($347) for premium, and AED 1,325/t ($361) for shredded grades.
