By the end of the current week, more and more talk about lower-priced deals for ex-Iran steel billet have been circulating in the market. Although no transactions have been confirmed by the time of publication, most market insiders are convinced that the current situation in the segment stemming chiefly from lower buying interest from key customers may signal that prices are set for a decline.
On balance, late this week, an Iranian steel producer has reportedly sold a cargo of billet at $688/mt FOB Iran, while another exporter is heard to have closed a tender at $690-695/mt FOB. At the beginning of the current week, SteelOrbis reported an ex-Iran billet sale at $720/mt FOB, but it turned out that the material is with 0.7-0.9 manganese content, which means the price may be not considered as for basic material. “I believe the market will go down further,” an official at an Iranian steel mill stated with regard to the current situation.
On balance, this week SteelOrbis’ assessment for ex-Iran steel billet has moved to $688-695/mt FOB from $680-700/mt FOB, with the potential for a further decline.