Although overall billet exports from Iran have remained limited amid reduced domestic energy supply, some sellers have managed to close deals for medium-size volumes and the workable price has declined. Still, while production is limited in Iran due to power shortages and with global billet market pricing being disturbed by aggressive ex-China offers, ex-Iran billet prices for large lots remain workable only in the nearby markets in the GCC where Iran has a lead time advantage.
According to sources, one of the Iranian mills has recently sold a 20,000 mt batch of billet for September shipment at $462/mt FOB, while the previous tender price stood at $475/mt FOB almost a month ago. In addition, a billet cargo from Iran is reported to have been sold to Oman at $472/mt FOB with the freight estimated at around $15/mt. The most recent offer level for Iranian billets from traders to the UAE and Oman are at $495-500/mt CFR, SteelOrbis has learned. However, ex-China billet offers are also in the GCC, at slightly below $500/mt CFR effective, with the base price estimated at around $490-495/mt CFR.
In Asia, ex-Iran billet prices are not workable given the weakening of the regional market. The most recent ex-China offer has been reported at $465/mt CFR Taiwan, while Iranian offers are estimated at up to $495/mt CFR. “We can consider this price [from Iran] only on CFR basis,” a contact told SteelOrbis, commenting on the $462/mt FOB sale.
In Turkey, large steel mills are currently also focused on ex-China billet, available at $485-495/mt CFR with several large deals concluded. However, small buyers, who normally buy ex-Russia and ex-Donbass billet, currently available at $500/mt CFR, may choose Iranian billet instead. The latest IF billet offers from Iran have been reported at $430/mt ex-works, translating to around $480/mt FCA Turkish border.