GCC Mills Commit To Exporting Billets

Direct reduced iron-route long steel producers signed two standard billet contracts with a trading firm last week with the intention of selling the product to North Africa.

The contracts for the 30,000 tonnes each in March and April shipments were reached by integrated mills in Qatar and Bahrain on a fob basis for $590 per tonne and $585 per t, respectively.

For March ready, GCC electric arc furnace mills are aiming at and above $610/t fob this week.

“While Indonesian mills are aiming for $620/t fob, Chinese buyers are bidding around $600/t cfr China for billet. The GCC region offers the best choice for billet supply because all major companies there run their own direct reduction iron modules, according to a senior trading business representative.

“Steelmakers on the DRI route can benefit from higher margins thanks to the current iron ore price and pellet premium. Turkiye has higher expenses because the majority of its longs makers use scrap as a raw material. Since the beginning of February, Turkey’s energy prices have decreased, but in response, scrap traders have raised their prices when selling to Turkish buyers, the author continues.