Following quite a long absence from trading, the two leading Iranian steel mills have resumed export trading. Accordingly, this weekend a major Iran-based steel producer Khouzestan Steel Company (KSC) is reported to have opened an auction for 40,000-50,000 mt of slab, for delivery from mid to late June, with the deadline for bids being April, 25. Meanwhile, another Iranian mill, Mobarakeh Steel Company, has floated 20,000-30,000 mt of slab, for delivery at the end of June. The tender is open for bids until April 29.
The latest offers for ex-Iran steel slab have been heard in Thailand and Indonesia at $800/mt CFR last week. According to market insiders, this might be the material booked at the end of last month within the scope of an export tender at $747/mt FOB. “Buyer must have made a loss in this deal,” a market source stated. The freight was estimated at around $75-80/mt while a tender was closed.
Following the imposition of export tariffs by the Iranian government in order to control steel and raw material prices in the domestic market, there is no common understanding of what price levels the Iranian mills are going to accept in the current tenders. While a definite pattern of calculation of tariffs has not been disclosed yet, the export tariff on slab is expected to be around 22 percent.