Middle East billet prices show weak growth in late March

Steel Billet Prices in the GCC Region

The price of steel billets in the GCC region experienced a slight increase, rising from $457 per ton to $460 per ton CFR between March 14 and March 28, according to Kallanish reports. Despite this minor uptick, the current price remains $3 per ton lower than it was at the beginning of March.

Middle East billet prices show weak growth in late March

Meanwhile, Iranian suppliers continue to maintain stable bids at $443-445 per ton CFR for ports in Kuwait, Oman, and the UAE, targeting May deliveries. On the other hand, Chinese producers adjusted their bids downward by $5-7 per ton, bringing them to the $474-476 per ton CFR range between March 21 and March 28. However, these offers have not garnered strong interest from traders due to unfavorable production conditions.

Market Predictions and Factors Affecting Prices

Industry insiders anticipate a further rise in billet prices, largely influenced by an increase in electricity tariffs in Oman. Since April, Omani electricity costs have surged by 33%, with peak-hour rates climbing by 200% since May. These higher tariffs, in place until the end of July, are aimed at ensuring uninterrupted energy supply to households during the region’s hot season.

In Iran, authorities are implementing electricity restrictions, which will affect metallurgical plants across different regions. Starting May 4, production plants in the southern part of the country will face electricity limitations, with restrictions extending to central regions by the end of May and to northern plants by mid-June. These measures will likely reduce production volumes. Furthermore, post-Ramadan construction activity is expected to drive up demand for rebar, thereby constraining billet supply.

Global Steel Billet Market Overview

From March 11 to March 27, Chinese billet prices edged up by $1 per ton, reaching $418 per ton EXW Tangshan, which remains $10 per ton lower than the levels recorded at the start of the month. On the Shanghai Exchange, futures contracts for May delivery are currently trading slightly below spot prices, by about $1-3 per ton. Additionally, traders have observed a decline in the number of billets available for sale, as producers are prioritizing rebar production over billet exports.

Meanwhile, Turkey’s billet prices remained stable at $530 per ton FOB between March 11 and March 27, following a significant jump of $23 per ton in the first half of the month. However, according to S&P Global, the Turkish rebar sector may face significant supply challenges in 2025. Nonetheless, an improvement in Syrian demand for rebar could bolster Turkey’s export potential.

Photo Credit: GMK Center

European Market Dynamics

In southern Europe, billet prices held steady at €492 per ton EXW Italy throughout March. However, the Italian rebar market has struggled due to adverse weather conditions, which have led to construction delays and weakened demand.

Rebar prices in the European market also trended downward in early March. In Poland, local rebar prices declined by $5-8 per ton compared to the last week of February, bringing them to $688-699 CPT. In Italy, rebar prices saw a more significant drop of €30 per ton within the first ten days of March, settling at €340-350 per ton EXW.