Steel billet export trading from Iran has remained constrained by the challenging situation in the global steel market. Continuing to face difficulties in seeking customers in their major markets, primarily in Asia, traders who deal with Iranian billet have continued to search for lower prices, but this week failed to get their desired prices. “Even considering the lower cost of freight to China, about $35/mt, prices still do not match and the price level is not higher than $440/mt FOB BIK for commercial grades,” a major market player stated. As SteelOrbis reported earlier, customers in China would be more likely to pay attention to import billet at $480/mt CFR level.
Meanwhile, this week an Iranian steel mill, Chadormalu Mining and Industrial Company, is reported to have cancelled an export tender for 30,000 mt of steel billet, which was floated in late August, due to lower bids. The highest bid has been voiced at $450/mt FOB, which was considered by a producer to be unworkable. Nevertheless, some market insiders have concerns that, given the current business environment in the world, prices will only be heading downwards in the near future unless there is some kind of sustainable support.
SteelOrbis has learned that two cargoes of ex-Iran steel billet, for 40,000 mt and 30,000 mt, which were booked last week at $462/mt FOB and $465/mt FOB, are destined to be shipped to Turkey, without any further details being available.
The SteelOrbis reference price for ex-Iran billet has regressed to $450-455/mt FOB this week, from $460-465/mt FOB last week.