Despite the end of the holidays, ex-Iran steel billet trading has remained mostly muted. Besides the government export policy which made Iranian steel mills highly cautious in export offerings, weak demand in key markets has exerted further pressure.
Nevertheless, a major Iranian steel mill has recently floated an export tender for 40,000-50,000 mt cargo of steel billet, with shipment in the middle of June. The deadline for bids is May 11. On balance, the results of the tender in question are expected to set the tone for price levels in the coming transactions. The market sources expect that ex-Iran billet prices may reach $620-630/mt FOB, compared to $666/mt FOB in the previous tender.