Improved steel
billet demand in
Iran has continued to support the revival of steel
billet export activities of producer countries. This week, some
billet transactions from
Turkey's Iskenderun region to
Iran have been concluded at $580-585/mt ex-works, while some higher volume transactions from other regions of
Turkey have been concluded at $580-595/mt FOB.
The Iranian central bank is providing foreign currencies to importers at levels significantly below the free market levels for transactions via letter of credit and since
Iran can only buy Turkish origin
billet with payments by letter of credit, Iranian demand for Turkish billets has increased.
Currently, ex-
CIS steel
billet offers to northern
Iran via the Caspian Sea are standing at $610/mt CFR. However, since these offers are for advance payments and as the Iranian central bank is providing foreign currencies to importers at levels below the free market levels only for transactions via letter of credit,
CIS billet offers to
Iran which at first glance seem more advantageous as compared to Turkish offers are in reality less competitive. Nevertheless, when all extra costs are included, ex-
CIS steel
billet offers are still competitive for some regions of
Iran. Thus, there may be some ex-
CIS steel
billet transactions to
Iran in the coming days.