Ex-Iran export steel billet trading has slowed down lately due to the lower demand pervasive in particular in Asia, the main destination for Iranian steel.
Even though official offer prices have remained at the previous week’s level of $610/mt FOB, most Iranian billet exporters have been ready to cut their prices in order to obtain sales. “There is a correction coming I feel,” a billet customer based in the GCC region commented. “Buyers appear to be worried. We hear mills are ready to reduce their prices. But there are no fresh deals,” a major Iranian steel billet exporter said. A cargo at $605/mt FOB that is ready to be shipped has failed to attract interest, according to sources.
By the middle of the current week, a major Iranian steel billet producer has succeeded in selling 20,000 mt of steel billet at $603/mt FOB, for delivery in late March. Meanwhile, another Iranian steel mill has cancelled its auction for 30,000 mt of billet, for delivery in the first half of May amid unattractive bids from customers.
Amid these circumstances, the SteelOrbis reference price for ex-Iran billet is at $590-603/mt FOB, versus $600-610/mt a week ago.