Middle East billet prices show weak growth in late March

GCC steel billet prices rose from $457/t to $460/t CFR between March 14 and March 28, according to Kallanish. This is $3/t lower than at the start of the month. Iranian bids are $443-445/t CFR from Kuwait, Oman and UAE ports for May delivery and remain stable. Chinese producers cut their bids by $5-7/t to $474-476/t CFR between March 21 and March 28, but their output remains unattractive to traders.

Market participants expect billet prices to rise due to Omani electricity tariffs increasing by 33% since April and by 200% during peak hours since May. These tariffs will be in effect until the end of July to ensure priority energy supply for households during the hot season.

In Iran, electricity limits are being introduced for the same reason. From May 4, they will apply to metallurgical plants in the south of the country, from the end of May – to the central region and from mid-June for plants in the north. This means that producers will have lower volumes. In addition, construction work and demand for rebar are expected to intensify due to the end of Ramadan. The supply of billets for sale will narrow.

Chinese billet prices from March 11 to 27 increased by $1 / t, to $418 / t EXW Tangshan. This is $10 / t lower than at the beginning of the month. Futures contracts for May delivery on the Shanghai Exchange are trading at $1-3 / t below spot prices. Traders note a decrease in the volume of billets offered for sale. Producers prefer to direct most of the product to further rebar production.

Turkish billet prices stabilized at $530/t FOB during the period March 11-27 after soaring by $23/t in the first half of the month. S&P Global estimates that the Turkish rebar market will face significant challenges in 2025 due to oversupply. The potential for recovery in Syria could improve the situation through increased exports.

The price in the southern European region remained unchanged at €492/t EXW Italy during March. Rebar demand in Italy is characterized by weakness due to adverse weather conditions. This is leading to delays at construction sites, traders noted in a commentary to Kallanish.

As reported, prices for rebar in the European market showed a decline in the first ten days of March. The cost of products from local manufacturers in Poland fell by $5-8/t compared to the last week of February, to $/688-699 CPT. In Italy, rebar lost €30/t in price in the first ten days of March, falling to €340-350/t EXW.