One of the Iranian steel producers has recently launched an export billet tender, which has become quite rare in recent weeks. One reason is the slow business activity in some of the sales outlets globally and therefore the bid prices are not always acceptable. Particularly, in the GCC and Turkey the billet market has been weak. However, in Asia the market for billet is somewhat stronger, which may result in some transactions for traders.
Recently, Iran’s Khorasan Steel Complex (KSC) has announced an export tender for 30,000 mt of 150 mm billet for delivery in first half of October. The company will accept bids until August 13 inclusive, the statement reads.
The market sources expect buyers to target prices close to $440-450/mt FOB, while the most recent export deals had been closed at $455-462/mt FOB depending on the steel grade and tonnage. The most recent billet offers from Iran to the UAE have been reported at $495/mt CFR, including around $25/mt freight. In Asia, ex-Iran billet offers to Indonesia and Thailand were at $500/mt and $505/mt CFR, respectively, both on CFR basis.