With the outlook regarding developments in the global steel market remaining mixed, the major customers of ex-Iran steel billet have continued to push prices down, aiming to secure themselves from potential losses in the future. According to a few sources, this week most bids for ex-Iran steel billet have been voiced at $430-440/mt FOB, down $25-30/mt from prices valid a week ago. The suppliers, in their turn, have maintained their attempts to slow down the rate of the price decline either by postponing their final responses towards the acceptance of prices or by shifting to sales of other products. Nevertheless, this week a major Iranian steel mill has managed to sell 30,000 mt of 150 mm 3SP steel billet at $460/mt FOB, for shipment at the end of September. With the material being destined to be shipped to China, where the workable prices are currently not above at $500-510/mt CFR, the FOB price in the abovementioned deal is considered by most market insiders to be overvalued, given the freight rate from Iran to China at $60-65/mt. “I think this is a long position. Because I do not think it can be sold today to China,” an international trader commented. Another sale of 40,000 mt of ex-Iran billet has been heard this week at $450/mt FOB, with the material being destined to be shipped to the UAE. At the same time, traders are targeting $530/mt CFR levels in the UAE for ex-Iran billet.
Meanwhile, in China a deal for 30,000 mt of ex-Iran billet has been heard at $505/mt CFR, which is in line with bids voiced by most customers during negotiations in the current week.
SteelOrbis’ assessment for ex-Iran steel billet has settled in quite a wide range, namely at $440-460/mt FOB, down $5-20/mt over the past week.