The lingering bearish sentiments in the global steel market have continued to exert severe pressure on the positions of Iranian steel billet suppliers in the export markets. Specifically, a major Iranian steelmaker has reportedly closed its export tender for 30,000 mt of 3SP modified steel billet for delivery at the end of July at $517/mt FOB. The price is $13/mt lower than the level fixed in the tender closed the previous week by another Iranian steel mill. The material in the tender in question may be shipped to Southeast Asia, where the workable prices are higher compared to those valid in China. Given the freight and costs for financing, the CFR price is estimated to have been at around $590/mt CFR.
With regard to future developments, most market sources remain convinced that the prices for ex-Iran billet have not reached the bottom yet. Low-priced bids for billet in China, voiced currently at $515-525/mt CFR, have continued to discourage Iranian market sources, with some of them assuming that ex-Iran billet prices may even fall to $450/mt FOB levels.