Prices for Iranian semi-finished products, both billets and slabs, have gained again over the past week, which has been confirmed in recent tenders. The market environment has been positive at the end of the year.
A tender for 30,000 mt of billet by one of the major steel producers in Iran has been closed at $555/mt FOB BIK Iran, SteelOrbis has learned. As SteelOrbis reported last week, four billet sales were done at $522-530/mt FOB. Prices have increased by at least $25/mt, supported by higher prices in the major importing markets, strong fundamentals and overall good demand. The price in the recent tender corresponds to $587/mt on CFR basis in Southeast Asia, adding freight.
According to sources, most non-Iran suppliers have increased offers to $600-610/mt CFR and this price level could be acceptable for customers who need to restock.
A slab tender for 30,000 mt was closed at $632/mt FOB BIK Iran for shipment in mid-February. The targeted sales destination is heard to be China or Southeast Asia. The price level is equivalent to about $664/mt on CFR basis. This is much higher than the previous ex-Russia deal to Taiwan at $630/mt CFR done more than a week ago.