Having more attractive prices compared to other suppliers, a major Iran-based producer has managed to conclude sales of a total of 70,000 mt of steel slab this week. However, under pressure from weaker demand in its traditional destinations, namely in China and Southeast Asia, the supplier has been forced to accept prices $8/mt lower than in the tenders closed earlier.
Specifically, SteelOrbis has learned of two fresh tenders for 30,000 mt and 40,000 mt of ex-Iran steel slab closed at $740/mt FOB BIK Port, for shipment until July, 20. While one cargo is destined to be shipped to China, another is expected to be delivered to Southeast Asia, with freight assessed at $55-60/mt to both destinations, SteelOrbis has learned. Prior to these deals, the same producer had booked two cargoes of steel slab (80,000 mt in total) at $748/mt FOB BIK Port about two weeks ago.
Meanwhile, offers of non-Iranian slab in Southeast Asia, which have been mostly voiced at $860-900/mt CFR during the past week, with the higher end of the range valid for Russia-origin slab, have been reported as not being workable in the region. Furthermore, some market sources have been discussing the possibility of price rises in the coming days on the heels of Russia’s introduction of export duty from August 1, but for now no real impact on prices has been seen from this issue.