The ongoing bullishness in the global steel and raw material markets has encouraged Iran-based producers of semi-finished steel products to increase their offers further, in particular, for steel slab. Moreover, with the positive outlook for the near future, traders have not kept Iranian suppliers waiting and have accepted the prices targeted by suppliers quite easily. Following the recent announcement of the Chinese government on the lifting of import duty for semis, including for slabs of non-ASEAN origin, prices for semis are expected to rise further.
Accordingly, SteelOrbis has learned of two fresh tenders, each for 30,000 mt of steel slab, closed by one of the main steel producers in Iran at $750/mt FOB BIK, for shipment at the end of June. The material is destined to be shipped to Southeast Asia or to China. Prior to the tenders in question, the same steel producer in Iran had sold a 30,000 mt cargo of steel slab at 720/mt FOB BIK last week, as SteelOrbis reported previously.
At the beginning of the current week, the SteelOrbis reference price for import slabs in Asia has been at $840-850/mt CFR. Hence, even taking into account the higher ex-Iran slab price, traders have a good chance of obtaining high margins, following the adjustments announced in China’s import tax policy lately.