This Content Is Only For Paid Subscribers
Saudi Arabia’s billet market remains heavily affected by logistics disruptions, with tight vessel availability, high freight costs and lengthy berthing delays continuing to complicate imported supply. At the same time, slower rebar sales are making rerollers more cautious about committing to new billet purchases.
Market insiders said delays in berthing have made delivery schedules increasingly difficult to assess, while some rerollers are temporarily postponing purchases until there is greater clarity on vessel movements and delivery times. Cash-flow constraints at some mills and slow rebar sales are also adding to cautious buying sentiment.
One trader said that while billet import offers from Asian countries are generally above USD 540-550 per ton CFR, buyers are targeting below USD 525-530 per ton CFR. Offers have become more available, but freight rates remain high, making it difficult for suppliers to meet buyers’ targets.
Indian billet export prices have increased to around USD 470 per ton FOB India, compared with the previous indication of USD 450-455 per ton at the end of August. Indian billet offers are currently heard at around USD 535-550 per ton CFR Saudi Arabia, depending on specification.
Chinese traders are offering 150 mm billet at around USD 555-565 per ton CFR Saudi ports, with the supplier retaining the option to select the discharge port depending on the situation at the time of shipment.
Domestic billet availability is also limited, as a major induction-based billet manufacturer are reportedly well booked for existing GCC commitments, leaving limited material available for additional spot requirements.
Market insiders expect logistics challenges to remain a concern even as alternative shipping routes and services develop. Billet supply constraints are also providing cost support to Saudi long steel producers. However, rebar demand remains relatively slow, with competition between mills limiting producers’ ability to fully pass higher input and logistics costs on to customers.