Sliding Asia-origin billet prices are dragging down local billet values in the Gulf Cooperation Council, except in Saudi Arabia, notes Kallanish.

Rebar grade (3sp) billet offers from Southeast Asia and China are still available at $500-505/tonne cfr GCC ports for September load-readiness, for a minimum of 30,000 tonnes. More traders are aggressively chasing every potential customer. Meanwhile, local long steel producers in the United Arab Emirates and Oman have inevitably reduced their tags.

The UAE's largest longs producer sealed a deal for 40,000t of mixed sizes, 130mm and 150mm, of high-manganese 3sp billet for early-August delivery at $490/t fob, plus a manganese premium.

The buyer trading company offered the product in Egypt on a cash against documents (CAD) basis at $540/t cfr Egyptian ports, with a small negotiable margin. However, sources close to the buying side say the fob price was $485/t effective. The same producer concluded a 15,000t deal on 21 June with a local UAE re-roller at $543/t ex-works for 3sp billet, for July delivery.

In Oman, producers are asking for 3sp (rebar grade) billet at $515-520/t ex-works for August delivery, which equates to $525-535/t delivered to buyer's yard in the UAE.

Bahrain's sole semis producer is heard to have reduced its 3sp billet price by $5-10/t on July to $500-505/t ex-works for August deliveries.

All prices are against LC at sight if otherwise not mentioned.

In the UAE, due to customs enforcement against misclassification of ferrous scrap exports, there has been a significant reduction in these shipments, which is putting pressure on domestic prices.

Values have remained mostly the same as last week, but a few grades are expected to decrease if rebar re-rollers lower their August-delivery rebar prices in the local market. HMS 1/2 80:20 is flat at AED 1,250-1,275/tonne ($340-347), HMS 90:10 – so called super – at AED 1,300/t, HMS Sheared at AED 1,325-1,350/t and rebar end-cut at AED 1,400/t. Meanwhile, fabrication is trading at AED 1,330-1,350/t versus last week's AED 1,350/t.