Saudi mills conclude Middle East billet export deals
Amid a lack of demand in their domestic market, Saudi merchant billet producers have concluded billet deals this week in Bahrain, United Arab Emirates and Jordan for a combined tonnage of nearly 40,000 tonnes.
Induction furnace-route 130mm 3/4sp billet prices in Saudi Arabia are pegging at around SAR 1,775-1,837/tonne ($473-490) ex-works, depending on mill location, production capacity and financial condition. Somehow, small-capacity induction furnace mills are offering lower quotes than large-capacity mills. Billet producers in Riyadh and Jeddah have access to lower-tagged scrap versus Dammam-based mills, which shapes their billet sales price, Kallanish notes.
The Dammam-based induction furnace-route major inked four contracts for 130mm 3sp (low-carbon) billet for prompt shipment each at $490-493/t ex-works. These were with two UAE-based re-rollers for a combined 30,000t, a Bahraini re-roller for 3,000t and a Jordanian buyer for 2,000t.
On the other hand, a small merchant billet producer in Dammam received an order from an Emirati re-roller for 2,000t of 130mm 3sp modified billet at SAR 1,775/t ($473) ex-works. In comparison, the Riyadh-based mill agreed to ship 3,000t of 130mm 3sp (low-carbon) billet at SAR 1,800/t ($480) ex-works to a re-roller in Bahrain.
Early this week, HMS 80:20 grade scrap prices increased SAR 50/t ($13.3) to SAR 1,250-1,300/t in Jeddah and Riyadh, and to SAR 1,350-1,400/t in Dammam. All are on a delivered basis.
The SAR 50/t hike is expected to be proportionately reflected in billet tags next week.
All prices exclude 15% VAT.
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