During the current week, ex-Iran steel billet trading has remained on hold, with most market insiders becoming increasingly doubtful as regards the future prospects for the market trend. “In my view, it is doubtful whether we will see a sustainable market recovery or maybe the temporary uptick is purely due to the return of market participants from the holiday [Lunar New Year holiday],” an international trader stated. “Everyone, including me, has sdoubts about the future market,” an Iranian source said, echoing the same sentiments.
Following the latest sale of ex-Iran steel billet by a major Iranian steel mill at $544/mt FOB, no fresh trades have been heard so far. Nevertheless, given certain signs of changes in the mood of most market insiders, global traders who have ex-Iran billet on hand have become more flexible in negotiations. Specifically, SteelOrbis has heard that by the middle of the current week offers of ex-Iran steel billet to Southeast Asia have mostly declined to $595-600/mt CFR compared to $605-610/mt CFR levels valid a week ago. However, some traders have remained reluctant to accept any prices below $605/mt CFR.
On balance, considering all the information mentioned above, SteelOrbis has lowered its reference price for ex-Iran steel billet from $544-550/mt FOB to $540-544/mt FOB this week.