Notwithstanding their success in trade at high prices about ten days ago, by the end of the past week Iran-based billet producers have been forced to accept considerably lower prices in their latest sales. Specifically, with demand from Egyptian steelmakers having been satisfied for now, Iran-based billet suppliers have refocused on obtaining orders in Asia, where the tradable levels are much lower due to the continued absence of import interest from China.
Accordingly, the most recent tender for 40,000 mt of ex-Iran steel billet, for shipment in January, has been closed at $565/mt FOB BIK. The FOB price is at least $25/mt lower compared to the bookings done to Egypt previously. As the material is destined to be shipped to Southeast Asia, the CFR price is assessed to be at least $630/mt CFR, taking into account the freight rate and financing of the transaction. “The suppliers who have managed to take advantage of emerging demand in Egypt are very lucky. However, returning to orders in other regions, they have no other choice but to cut their targets. The slump in China has significantly affected the global market,” an Iran-based trader commented. Meanwhile, a cargo of 30,000 mt billet, produced by another Iran-based producer, is said to have been traded at $551/mt FOB this week, though, according to sources, the tender was subsequently cancelled due to the low price.