Billet prices have softened in the Gulf Cooperation Council; however, buying appetite remains low and buyers are postponing their enquiries till after the Eid holiday.

Iranian billet offers are down $30-45/tonne on-week to $710-715/t cfr Oman and United Arab Emirates, for end-May shipment, suggesting the duty imposed on Iranian billet exports has not much affected Iranian billet quotes. Complications in making payment to Russian mills are limiting the flow of low-priced Russian billet into the region, Kallanish notes.

In Oman, local billet producers have reduced their 150mm 3sp modified grade billet target prices to $740-765/t ex-mill. An electric arc furnace mill has concluded a few deals overseas and in regional countries, heard at $770/t fob Oman. Last week, the target price of the mill was at $800/t fob.

In UAE, local induction furnace billet offers are heard at $750-755/t ex-works for May shipment, whereas Russian 150mm 3sp modified billet is at $735-740/t cfr UAE for June shipment.

"We are hesitant about how payment would be made for Russian material. Our banks warned us about the sanctions on trade with Russia, so in order not to take the risk, we are keeping a distance to [Russian] offers," explains a UAE trader.

For May shipment, a local EAF billet producer is heard setting its price at $790/t fob Bahrain. However, only small-tonnage allocations are available.

In Iran, a 40,000-50,000-tonne billet tender was recently heard concluded at $650-660/t fob, equating to $720-730/t cfr Southeast Asia.

According to local Iranian sources, an 8% export duty will be levied on billet prices effective from next week, reduced again from the already revised 11% duty announced on Wednesday (see Kallanish passim).

"Coming to the end of Ramadan, the market is quiet,” comments a senior GCC mill official. “The mills [re-rollers] have adopted a wait-and-see policy until the end of the week-long Eid holiday, which will start on Monday next week. After 9 May, we will see more lively trade and floated enquiries.”

In Saudi Arabia this week, the billet market has been asleep, with prices unchanged on-week at SAR 2,900-2,950/t ($773-787) ex-mill for 150mm 4sp billet. However, there is an anticipation of price softening by SAR 50-100/t ($13.3-26.6), to align with neighbouring countries, once the Eid holiday is over.