Demand for imported billet has improved in Asia over the past week since China has returned from its holidays and has resumed import purchases. As a result, sentiment among Iranian billet exporters has also improved, with some tonnages having been booked recently.
According to market sources, a large volume of 50,000 mt of ex-Iran billet was sold to the Philippines at $440/mt CFR last week. Most traders agree that it is “very unusual as the Philippines strictly controls imports.” This cargo was purchased from the Iranian mill some time earlier and sources said that it could be re-exported from the Asian country. But no further details were available. The price level of $440/mt CFR corresponds to $410/mt or just slightly lower on FOB basis.
At the same time, the tradable level for ex-Iran billet was at $435/mt CFR maximum in Thailand last week, according to traders.
“The price at $410/mt FOB is normal now,” a source said. Also, there are hopes that import prices will go up further in Asia, which has already supported sentiments. The highest bid in a tender closed by Khouzestan Steel Company last Friday for 30,000 mt of billet was at $415/mt FOB for November shipment, according to the company, with Asia as the targeted sales destination.