CIS suppliers raise their billet prices for Iranian market

CIS suppliers have lately raised their steel billet prices for Iran. At present, CIS suppliers  are offering 125 x 125 mm to 150 x 150 mm billet at $630-640/mt CFR Iranian northern port (Anzali) for production in May and shipment in June, up from $620-630/mt the week before. CIS billet had been offered at $650-660/mt CFR Iranian northern ports in mid-March, at the same levels in mid-February, and at $680-690/mt CFR Iranian northern ports in mid-January this year.
 
The turmoil in the Middle East and North Africa (MENA) region is one of main factors which has negatively impacted demand for CIS billet in the past few month, and has contributed to the reduction of about $50-60/mt in CIS suppliers' billet prices in the recent two to three months. CIS suppliers have previously made some attempts to raise their prices for Iran and for other MENA countries, but they have been unsuccessful due to weak demand. Nevertheless, Iranian traders and re-rollers have returned to the market in the current week after the Iranian New Year holidays, and their return may provide some support for the latest price increase made by CIS suppliers. 
 
Local Iranian traders who import billet from the CIS have raised their prices for ready stock billet following the price increases for billet from CIS suppliers. Iranian traders are currently offering 125 x 125 mm to 150 x 150 mm billet at about $635-670/mt ex-stock Iranian northern ports, up from $630-650/mt the week before and up from $630-660/mt about five weeks ago. Meanwhile, Ukrainian origin billet of 125 x 125 mm - 150 x 150 mm size is now priced at $615-640/mt ex-stock Iranian southern port, up from $610-615/mt the week before and up from $610-620/mt about five weeks ago.
 
According to Iranian customs, Iran imported about 4.5 million mt of semi-finished steel (mainly billet) in the last Iranian year (March 21, 2010-March 20, 2011).
 
US$1 = Rials 10,400