CIS suppliers reduce their billet prices for Iran

CIS suppliers have lately reduced their billet prices for Iran following attempts to raise their prices in the previous few weeks. At present, CIS suppliers are offering 125 x 125 mm to 150 x 150 mm billet at $620-630/mt CFR Iranian northern port (Anzali) for production in June and shipment in July, down from $630-640/mt about two weeks ago but at the same level as three to four weeks ago. CIS billet had been offered at $680-690/mt CFR Iranian northern ports in the middle of January this year, and at $650-660/mt CFR Iranian northern ports in both mid-February and mid-March.
 
The turmoil in the Middle East and North Africa (MENA), which has negatively hit demand for billet in some of the affected countries, has forced CIS suppliers to reduce their billet offers, despite some attempts to raise their prices. On the other hand, Iranian market demand for billet has not suffered during the past few months. In fact, Iranian buyers of billet are not complaining about the existing circumstances, as the political unrest in other MENA countries may help them to get lower prices from CIS billet suppliers. 
 
Local Iranian traders who import billet from the CIS have reduced their prices for ready stock billet, especially following the reductions in CIS suppliers' billet prices. Iranian traders are now offering ready stock CIS origin billet of 125 x 125 mm to 150 x 150 mm sizes at about $635-645/mt ex-stock Iranian northern ports, compared to $635-670/mt about two weeks ago and compared to $630-650/mt about three weeks ago. Ukranian origin ready stock billet of 125 x 125 mm to 150 x 150 mm sizes is now in a price range of about $615-630/mt ex-stock Iranian southern port, compared to $615-640/mt  two weeks ago and up from $610-615/mt  about three weeks ago.
 
Iran, as one of the main importers of steel in the MENA region, imported about 4.5 million mt of semi-finished steel during the last Iranian year (ended March 20), according to the Iranian customs authorities.
 
US$1 = Rials 10,400