Following the upsurge in the global commodity prices, coupled with China’s positive return from the Chinese New Year celebrations, Iran-based suppliers of billet have taken the opportunity to increase export offers. Moreover, once target prices have been fixed in deals, some suppliers have extended bidding time frames for ongoing tenders, seeking to achieve even higher price levels.
Accordingly, SteelOrbis has learned of a fresh tender for 30,000 mt of steel billet closed by one of the main steel producers in Iran at $543/mt FOB Bandar Abbas, for March shipment. Taking into account that the material is destined for China, the CFR price is estimated to be not below $575/mt CFR or even higher, with the recent rise in freight rates. Another producer is expected to close its tender for 30,000 mt of steel billet, for end-of-March shipment, in the coming days. The price is expected to firm up further on the heels of the recent developments in the global market. In particular, in Asia the tradable price level for steel billet has already reached $580-600/mt CFR this week.
Last week, a few tenders for ex-Iran billet were closed at $530/mt FOB southern ports of Iran.