Although the billet price uptrend seen globally has slowed down somewhat recently and a bearish mood has started to appear, an Iranian steel producer has managed to close a tender lately with a price increase. In particular, import scrap deal prices in Turkey have stopped rising after the rapid hike for January shipment cargoes, and limiting the extent of possible price rises for billet. In Asia, although mills are more or less sold out for January shipments and have increased offers lately, the situation in China may affect the billet pricing in the region, including the workable billet offers from Iran. In the GCC region, the situation is relatively stable with rebar demand continuing and there is some chance the higher Iranian billet prices will be accepted in the region.
According to sources, Iran’s Chadormalu Mining and Industrial Company has traded 30,000 mt of billet at $480/mt FOB, while some bids were slightly above $470/mt FOB. The cargo is for early January delivery. Previously, the general range of ex-Iran billet prices stood at $464-472/mt FOB based on earlier tenders. The latest offers to the UAE and Oman have stood at $490-495/mt CFR and may increase by another $10/mt soon, while the price indication for Saudi Arabia has been reported at $500/mt CFR Dammam. In Asia, offers from Iran have been mainly reported at $520/mt CFR, in particular to Thailand, versus $510/mt CFR indications for the region earlier this week.