One of the main steel producers in Iran, Khouzestan Steel Company (KSC), is going to close a tender for 30,000 mt of slabs and 30,000 mt of billet on Friday, October 9. In the slab segment, the mill is targeting a higher price level, seeing higher indications in Asia.
The targeted price for slabs in the tender is $450/mt FOB, which is higher than the company’s tender last month closed at $432/mt FOB. Traders said that $445/mt FOB is achievable owing to higher buying indications in Asia lately and the overall limited supply volume in the market. The FOB price level of $445/mt FOB corresponds to around $475/mt CFR Southeast Asia. As SteelOrbis reported earlier, contracts for imported slabs from S. Korea and Vietnam have been closed at $480/mt CFR on average in Indonesia. A Ukrainian supplier is targeting $485/mt CFR and above for slabs in Asia.
KSC is targeting $415/mt FOB for billet in the tender. The situation in the billet market is less promising for Iranian suppliers. In Asia, buyers are bidding at below $440/mt CFR for Iranian material. So most bids from traders on FOB basis are below $410/mt FOB.