The ongoing downtrend in the global steel market and skepticism regarding the possibility of any positive changes in the near future have continued to force Iranian steelmakers to be very accommodating to customers if they want to secure orders. “The domestic and export markets are really bad and there is nothing positive on the horizon,” a market source stated. Specifically, this week bids for ex-Iran steel billet have been voiced not above $460-470/mt FOB, down $30-40/mt from the price levels in previous deals a week ago. In particular, in the middle of the current week Iranian producer Chadormalu Mining and Industrial Company sold a 30,000 mt cargo of steel billet, for July shipment, at $461/mt FOB, within the scope of an export tender. “Actually, there are inquiries for billet, in particular, from the Persian Gulf region and Southeast Asia, but customers are seizing their opportunities to get a lower price,” a seller stated.
Meanwhile, the current offers for ex-Iran steel billet from traders have settled at around $520/mt CFR to Southeast Asia, which corresponds to the current FOB price levels with added transportation costs.