In April, commercial billet bids in Gulf Council countries declined by $11/t to $449/t CFR as of April 18, forcing Saudi Arabian mills to sell at $520/t EXW, below the breakeven level of $533/t EXW. Mills avoided shutting down to prevent higher losses from restarting equipment.
Billet prices in southern Europe fell by €3/t to €492/t EXW, mirroring trends in the Gulf due to weaker rebar prices. Similarly, Chinese steel billet prices dropped by $11/t to $407/t EXW as of April 12. Reduced warehouse stocks in Tangshan indicated potential price increases, but weak rebar demand dampened optimism.
Re-rollers in the Middle East opted to import billets from Southeast Asia, notably China and Indonesia, due to better pricing. In Turkey, billet prices decreased by $10/t to $520/t EXW as of April 11, with local rebar producers holding off purchases in anticipation of further declines.
Oman saw electricity tariffs rise by 33% for peak hours starting in April, impacting capacity utilization. While reduced rebar production was expected to increase regional prices, weak demand has only managed to stabilize steel prices for now.
