CIS suppliers continue to increase their billet prices for Iran

CIS suppliers are still hiking their steel billet prices for the Iranian market, just as for other destinations, backed by global increases in prices of iron ore and scrap. Currently, CIS suppliers are offering billets at about $615-630/mt CFR Iranian northern ports for production in September and shipment in October and November, up from $580-590/mt last week and also up from $560-570/mt two weeks ago. 
 
CIS export prices of steel billet for the Iranian market had hit a bottom level of $480-490/mt CFR Iranian northern ports in mid-June this year; however, CIS billet prices have been trending up steadily from the end of June up to the present. Global trends in the last few months have created a good opportunity for CIS suppliers to hike their billet prices although Iranian buyers like buyers in other countries have not fully accepted the price increases yet .
 
The continuous rising trend of billet prices in the last few months has forced some Iranian buyers to leave the market. However, Iranian re-rollers and traders who are expecting further price increases in the coming weeks or who need billets urgently are inclined to place new orders for billet even though transactions could be considered to be risky at the current time.
 
Iran imports about four to five million metric tons of semi-finished steel (mainly billet) per year, mostly from CIS countries. Iran imported about 1.26 million metric tons of semi-finished steel in the first four months of the current Iranian year (started March 21), while it imported 1.70 million metric tons of semis in the same period of the last Iranian year - according to the newly published data from the Iranian customs authorities.