The Gulf Cooperation Council market is witnessing gradually reducing Iranian billet price offers each day for delivery in late November.

Last week, end-November-delivery electric arc furnace billet price offers were at $495/tonne, while on Monday this week they were at $492/t and on Wednesday at $488/t, all cfr United Arab Emirates ports. GCC merchant billet producers also softened their price offers; however, buyers' low target prices are still not achievable for them, Kallanish learns.

Last week in UAE, an induction furnace billet deal for 15,000-20,000 tonnes concluded at $535/t ex-works, equating to $540/t delivered to buyer's yard. This week's induction furnace billet offers softened to $530/t ex-works from last week's $540/t ex-works. Indonesian billet offers are currently heard at $570/t cfr for November shipment.

"The demand is better as the rebar prices improved slightly this week. However, buyers’ target price for billets is not more than $510-515/t delivered. We cannot go to that level," explains a senior merchant billet producer official. "Frankly speaking, all buyers take Iranian billet prices as a benchmark, and I wish the sanctions on Iran will be revoked, and they [Iranian mills] can sell to all markets and disappear from our market, or price offers will hike due to diverse market distribution availability."

Bahrain's sole billet producer is sold out for October. For early-November readiness, the price is expected to be around $520/t ex-works for its domestic market.

Omani mills' targets for EAF billet are at $548-563/t ex-works, and they see good demand from West Africa, Jordan and Morocco. An offer for 130mm 3sp grade billet at $610/t cfr Morocco has not yet been translated into a deal.   

On the other hand, Iranian billet offers to Oman are heard at $480-490/t cfr Muscat.