Saudi Arabia’s benchmark steel mill has extended the validity of its scrap purchase orders from December 16 to the end of the month, effectively dispelling rumors of falling scrap prices. Although billet prices are showing a slight downward trend, this is largely due to unfounded speculation that scrap prices would decline.

Billet Market Updates

Billet buyers attempted to leverage these rumors to push prices lower. However, only a few scrap suppliers adjusted their prices, with reductions of SAR 20-25 per tonne ($5-7). Most suppliers maintained their current pricing levels. On the east coast, a mill operating induction furnaces finalized a special deal for 4,000 tonnes of 100mm 3sp billet at SAR 2,070/t delivered to Riyadh, equivalent to SAR 2,020-2,030/t ex-works. Another supplier sold 1,000 tonnes of 130mm 4sp billet at SAR 2,110/t delivered, equivalent to SAR 2,070/t ex-works. Both deals were for prompt shipment.

Scrap Prices Show Resilience

Scrap demand is set to increase as Arkan Steel and other local players bring new production capacities online in Riyadh and Al Kharj. In Jeddah, delivered prices for HMS scrap stand at SAR 1,450-1,470/t, while premium grades are priced at SAR 1,530-1,540/t. Prices in Riyadh and Dammam are slightly higher, reflecting robust demand.

Hesitation in Imported Billet Deals

Imported billet from the Far East and India is priced at $480/t cfr (liner out) for February shipment with a minimum lot size of 30,000 tonnes. Buyers, however, remain cautious, targeting $475/t cfr or lower for 150mm 3sp billet with 0.6% manganese content.