Iranian billet producers have managed to conclude deals at higher prices and a further rise is anticipated amid the global shortage of material due to Russia's invasion of Ukraine. The major sales destinations are still Asian countries, even though customers in this region are not ready to accept big price increases, at least for now.
Two deals from Iranian mills have been signed at $610/mt FOB and $615/mt FOB for April shipment this week, according to a number of sources, while last week a contract from one of the sellers was done at $603/mt FOB. SteelOrbis learned that the final sales destinations for these cargoes are expected to be Southeast Asia or China.
New offers from BF-based Iranian mills have been reported at $620/mt FOB or higher, also for April, similar to what EAF-based mills can provide.
A contract ex-Iran IF billet has been heard at $600/mt FOB, with no further details available for the destination, but most probably it is also for the Asian market.
“Mills are evaluating the market. They saw the latest Turkish prices and are awaiting a further increase for new allocations,” an Asian trader said.
Among the most active buyers of ex-Iran billet over the past weeks have been importers from Thailand. After offering at $670/mt CFR last week, traders, who have ex-Iran billet in positions, have withdrawn their offers. “Some say it [prices for ex-Iran billet in SE Asia] has to be a minimum of $700/mt CFR now,” a trader from Bangkok told SteelOrbis.
The SteelOrbis reference price for ex-Iran billet has been settled at $610-615/mt FOB, up from $590-603/mt FOB last week.