Market activity in the Gulf Cooperation Council billet segment remains subdued, particularly in Saudi Arabia, where most steel producers only resumed operations post-Eid holiday on Wednesday, Kallanish notes.

In the United Arab Emirates, a re-roller is about to finalise a long-anticipated deal with the Qatari fully integrated mill, an ECAS-certified supplier. The agreement, which follows months of negotiation since November 2024, involves the purchase of 30,000 tonnes of 150mm 3sp billet. The negotiations are expected to be concluded this week with delivery and payment terms still to be agreed.

The sale marks a strategic move by the Qatari major, which has been actively seeking new sales channels in the UAE market. It restarted its second melt shop earlier this year and has paused its rebar exports to the Far East since the third quarter of 2024. The firm is thus shifting focus to billet supply within the GCC for minimum 25,000-30,000t parcels.

ECAS compliance in UAE has also tightened market supply, giving certified suppliers a competitive edge. The company also remains a key supplier of DRI and is currently the bloc’s only producer of HBI.

A local trader is also heard to be about to close a deal with an international trading house for 50,000t of billet from an Indonesian ECAS-certified supplier at $456/tonne cfr Jebel Ali (LO). This is for 150mm 3sp billet for end-September load readiness.

Despite the recent transaction, overall billet market activity in the UAE remains slow. Local suppliers continue to target $490-500/t delivered for 130-150mm billet in 5,000-15,000t parcels, while offers from Oman range between $480-490/t, with payment via LC at sight.

Buyers in the UAE are holding firm, aiming to close deals at closer to $480/t delivered.

A regional trading house official notes: “Market participants are still evaluating both global and regional signals. Activity is expected to pick up next week."

"This week, Chinese prices remain unchanged, while Indonesian offers have increased slightly to $427/t fob, up by $2 from last week's $425 for standard billets. Observing the subdued Chinese domestic demand, monsoon in India and summer mood in Europe, the lack of demand is expected to weigh on prices," he adds.