As expected, ex-Iran export slab prices have continued to trend down in line with the developments in the global steel market. Specifically, Iranian steel mill Mobarakeh Steel Company is reported to have closed its tender for 30,000-40,000 mt of steel slab, for shipment at the end of July at $580/mt FOB. The price is $60/mt lower than those fixed in the previous tender closed by another Iranian steel mill in the first half of May. The material is likely to be shipped to Indonesia, though this information has not been confirmed so far.
The availability of lower-priced offers from Russia has continued to exert pressure on the positions of global steel suppliers, in particular, of Iranian suppliers. Specifically, as SteelOrbis reported earlier, in recent days significant volumes of ex-Russia slab have been traded to China and Taiwan at $590-620/mt CFR. As a result, sellers of Iranian material may be asked for further discounts in coming negotiations. Taking into account the latest ex-Iran slab sale and the freight from Iran to Asia assessed at $60/mt, the CFR price may be not lower than $640/mt CFR.