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GCC rebar mills continue to face limited billet availability as vessel delays complicate deliveries into key markets. MESTEEL’s August assessment puts UAE billet at USD 640-650 per ton, with buyers in the UAE and Saudi Arabia continuing to seek material amid persistent uncertainty over imported supply.
Asian billet remains considerably cheaper at origin, with Indian material offered at around USD 450-455 per ton FOB for September shipment, while Chinese 3sp billet is indicated at around USD 450-460 per ton FOB and Indonesian billet at around USD 465-475 per ton FOB. Indian cargoes generally have shorter sailing distances to the GCC than Chinese and Indonesian material, but all imported cargoes currently face uncertainty over vessel availability, freight, port congestion and delivery schedules.
Market insiders said freight remains an important component of the cost of imported billet cargoes, although larger cargoes can benefit from lower freight rates. The current difficulty is less about Asian billet losing its price advantage and more about whether buyers can secure vessels, acceptable insurance and reliable delivery schedules.
UAE rerollers continue to book imported billet from ECAS-approved mills outside the GCC, including China, according to market sources. However, lengthy berthing delays at Fujairah and Hamriyah ports are creating difficulties in receiving material on time. A UAE trader told MESTEEL that billet availability remains tight and vessels are taking a long time to berth, while rebar demand remains good. The benchmark UAE mill also kept its rebar prices unchanged for September.
The UAE market is also drawing on regional billet supply as buyers seek to cover immediate requirements, although imported material remains economically attractive when freight and delivery can be secured.
The situation is also challenging in Saudi Arabia. A Saudi market participant described rebar demand as normal but billet availability as very tight, citing a shortage of raw materials. Some Saudi buyers continue to look for imported billet at around the low-USD 500s per ton, provided a vessel can be secured, while locally available material is commanding a premium for urgent requirements, with market indications around USD 630-640 per ton EXW.
A market insider said some billet cargoes bound for Saudi Arabia had been diverted to third countries and discharged there, highlighting the difficulties in securing and unloading seaborne supply.
