Though many traders have left prices for ex-Iran billet in Thailand and Indonesia unchanged since last week, some of them have started to test the market, asking buyers to give lower bids. New deals for ex-Iran billets are expected with discounts.
Most offers in Indonesia for ex-Iran billet have been at $510/mt CFR at the lowest, similar to last week. “The range is still at $510-515/mt CFR, but we are waiting for $500/mt CFR,” an Indonesian buyer said. “Sellers of Iranian billets are not so active. But Dexin is still at $550/mt CFR Jakarta, so new purchases will definitely be for Iranian billet,” another source said.
At the same time, some traders have started to test the market at lower levels. Some traders have been ready to offer at $505-510/mt CFR. Moreover, “Traders-agents try to generate bids by asking buyers to bid at $500-505/mt CFR, equivalent to local billet,” a trader from Bangkok said.
There have been a limited number of offers in general in Thailand for ex-Iran billet, as buyers have been targeting below $500/mt CFR since last week.
Taking into account decreasing bids in Asia and bearish sentiments, market sources are anticipating new ex-Iran sales by mills at $450/mt FOB at the highest, versus the previous contract at $455/mt FOB reported last week.