CIS suppliers still push up billet prices for Iranian market

CIS suppliers have been steadily hiking their billet prices for the Iranian market, just as for other destinations, in the last few months. Currently, CIS billet suppliers are offering a price of about $650-670/mt CFR Iranian northern ports for May production and June shipment. However, no large transaction in this price range has yet been reported as billet prices have been very unstable in recent days. On the other hand, there is a possibility that billet prices may go up further in the coming days, and this could stimulate Iranian clients to place some orders for billet in the days ahead.
 
Iranian re-rollers and traders are mostly holding back their orders for billet at present as prices continue to go up rapidly. This current trend has surprised all market players, who generally lack confidence in existing price levels. Furthermore, Iranian buyers are worried that the same collapse in steel prices which occurred in 2008 could be repeated once again. Back then, a rising surge pushed billet prices up to over $1,200/mt in the second quarter of 2008, with prices subsequently collapsing.
 
Following new developments in the global steel market and especially in the billet markets, local Iranian traders who import CIS billet have hiked their prices for ready stock material. Nowadays local traders are offering ready stock billet at about $700/mt ex-stock Iranian northern ports and they are optimistic that they will be able to raise their prices further in the coming days in line with global developments.