CIS suppliers are currently offering 3SP/PS and 5SP/PS billets at $360-370/mt CFR Iranian northern ports - i.e. around $10-15/mt higher than two weeks ago - and there are some rumors that they are going to hike their prices further in the coming days. However, no substantial transaction has yet provided support for these current offer levels as most Iranian rolling mills have not placed orders during last week and into the current week due to the Iranian New Year holiday.
Local traders are looking forward to the return from the holidays next week when actual market prices will be clarified. Most traders comment that billet prices are unlikely to register strong fluctuations after the holidays due to the global price levels, but that the stagnation in the local market is so strong that further price reductions for billet may be possible.
Local rolling mills as well as traders are anxious to avoid building up their billet stocks at present as they think there could be further price reductions due to the global trend. Of course CIS suppliers have hiked their prices in recent weeks but most market participants interpret this as just a temporary trend. In addition, the Iranian New Year holiday is another reason why local buyers have suspended their purchases.
Weak demand for billet and other semi-finished steel products have caused Iran's import volume for such products to fall in 2008 and 2009. Iran imported about 3.28 million mt of semi-finished steel (mainly billet) in the first eleven months of the last Iranian year (21.03.2008-20.02.2009), while it imported about 3.66 million mt in the same period of the previous year, according to the Iranian customs authorities.