According to a Qatar Steel marketing manager, higher CIS and Turkish billet CFR Persian Gulf prices have several leading rerollers in the Gulf Cooperation Council region cutting capacities usages to 70%.
Traditionally steel producers in the GCC region have been buying billet from the CIS and Turkey but due to unstable billet prices, producers are not using their full capacities.
Meanwhile, rebar and wire rod prices are expected to fall 8% to 13% in the Q4 due to lower scrap and iron ore prices. CIS billet has been offered at USD 540 per tonne CFR Persian Gulf for October production and delivery down from the previously booked price of USD 590 to USD 600 CFR.
Thanks to the inflated prices CIS billet purchases in the Persian Gulf have been sparse. Rerollers are only buying as and when needed. Most billet consumers are waiting for prices to fall to lower levels.