On December 8, electric arc furnace (EAF) steel producers in Oman announced a price increase for commercial-grade 130/150mm billets destined for the UAE market. The quotation was raised by 5–8 USD per ton, pushing the current target CFR (Cost and Freight) price range to 486–490 USD/ton.
This upward adjustment marks a notable shift from the transaction prices recorded in November, when the same specification of billets was traded at a much lower range of 480–482 USD/ton. The price hike reflects the evolving dynamics of supply, demand, and cost factors in the regional steel market, signaling a growing bullish sentiment among Oman’s steel manufacturers.
Recent market transactions show that UAE-based rebar rerollers have actively responded to the price movement by securing substantial billet supplies from Oman. Two major procurement deals have been finalized in the near term:
- The first batch involves a purchase of 5,000 tons of billets, with the transaction price set at 482–483 USD/ton.
- The second order covers a larger volume of 7,500 tons, closed at a higher price of 485 USD/ton.
Both batches of billets are scheduled for delivery in the second half of December, aligning with the production schedules of UAE rerollers as they stock up raw materials to meet downstream construction demand. The willingness of UAE buyers to accept higher prices underscores the stable demand for billets in the region, despite the recent price increase.
Several factors have contributed to Oman’s decision to raise billet quotations for the UAE market:
- Cost Support: Fluctuations in the prices of scrap steel, a key raw material for EAF steelmaking, have increased production costs for Oman’s steelmakers, creating a fundamental impetus for price adjustments.
- Stable Regional Demand: The UAE’s construction sector, though entering a seasonal slowdown phase, still maintains steady demand for rebar and other construction steel products. This sustained off-take has translated into consistent procurement needs for billets among local rerollers.
- Supply-Demand Balance: Oman’s billet exports to the UAE have remained a core trade flow in the Gulf Cooperation Council (GCC) steel market. With no significant surge in billet supply from other regional producers, Oman’s steelmakers have gained the flexibility to adjust prices according to market conditions.
Looking ahead, the trajectory of billet prices for the UAE market will hinge on two key variables. First, the sustainability of downstream demand in the UAE—if construction projects maintain their pace of activity, the upward price momentum may persist. Second, the trend of scrap steel prices in the international market will continue to influence the cost side of Oman’s billet production, acting as a critical determinant for future price adjustments.
Industry analysts note that the current price level is likely to hold in the short term, as UAE rerollers have already locked in sufficient supplies for December production, and no large-scale inventory backlog has been reported in the supply chain.
