Billet suppliers in Oman and the United Arab Emirates have increased their prices, Kallanish notes.

Over the last seven days, a re-roller in the UAE booked a 150mm rebar-grade billet from an Omani supplier for 10,000 tonnes of immediate-shipment cargo at $515/tonne delivered to his yard. Another UAE re-roller signed two separate 150mm rebar-grade billet contracts with local suppliers, of which a 10,000t lot was concluded at $515/t delivered and a 5,000t package at $520/t. The same UAE billet suppliers sold to the same buyer two weeks ago for $10/t less for the same volumes.

The largest steel producer in Oman has a full order book and is not taking any new orders for October and November. If it does open up for November, it would attempt to sell 150mm 3sp billets at $525/t ex-works. The producer has a pending shipment of 5,000t to a re-roller in the UAE for the end of October, agreed upon at $500/t delivered to the buyer's yard.

Bahrain's sole producer sealed a 3sp (rebar grade) billet deal last week at around $500/t delivered to the buyer's yard against LC at sight.

The local demand for scrap in the UAE is low as the largest consumer, the fully integrated benchmark mill, has significantly reduced its intake, although India's buying appetite has increased significantly.

This week, delivered scrap transaction prices in the domestic market are at AED 1,175-1,200/t ($320-326) for HMS 1/2 80:20, AED 1,250/t for processed PNS, AED 1,240-1,260/t for HMS sheared, AED 1,300-1,320/t for fabrication. The HMS 50:50 (so called mixed HMS) is at AED 1,100-1,130/t and LMS is at AED 950-1,000/t.