Ex-Iran billet suppliers try to raise prices further amid developments in China

Iran-based steel billet suppliers have continued to raise their export prices, aiming to gain as much advantage as possible from the booming demand in China. While some mills have floated their scheduled tenders this week, seeking higher prices compared to the levels achieved in the previous week, other producers have preferred to wait for a while, closely watching developments in the market. “I hear current offers from other Iran-based mills at least at $640/mt FOB. As I was expecting to get higher numbers, I have adopted a wait-and-see stance at present,” a major exporter stated.

On balance, at the beginning of the current week SteelOrbis has learned of a tender for ex-Iran billet closed at $635.5/mt FOB BIK, up around $5/mt from the prices fixed in tenders a week ago. As the material is destined to be shipped to China, the CFR price is assessed to be at least in the range of $690-695/mt CFR, taking into account the freight rate at $55-60/mt. Nevertheless, there are still valid offers for ex-Iran billet from traders at lower levels. One trader is said to be in the market with an offer for 20,000 mt of ex-Iran billet at $623/mt FOB Bandar Abbas, corresponding to around $680/mt CFR China.

In addition, during the current week suppliers of ex-Iran billet have been seeking to supply to Southeast Asia, with one deal having been reported at $680/mt CFR and another booking at $695/mt CFR, but with no confirmation by the time of publication.