This week, Iranian steel producers have remained mostly inactive due to the Persian New Year (Nowruz) celebrations which started on March 21. “Most plants and companies will start working after the holidays. Now it is quiet here,” an Iranian trader stated. “Lately, ex-Iran billet offers are very scarce. I have nothing heard about them this week,” a Singapore-based trader commented. Nevertheless, early this week an Iranian steel mill is said to have closed its billet tender for 30,000 mt of steel billet at $567/mt FOB, with shipment in the middle of May. Besides, information about another sale of ex-Iran steel billet at $576/mt FOB, reportedly done on Saturday, March 18, has surfaced in the market, though it was still not confirmed by the time of publication.
Given the bearish sentiments in the global billet market, apart from the availability of ex-Iran billet in Turkey at $580-590/mt CFR, Iranian billet producers will find themselves under pressure to reduce their prices.
Meanwhile, this week SteelOrbis has decreased its ex-Iran steel billet reference price from $572-575/mt FOB BIK to $565-570/mt FOB BIK.