Following the escalation of negative sentiments in the global steel markets, Iranian suppliers have been forced to lower their offer prices in order to attract buyers. Consequently, both billet and slab prices have softened noticeably within the past week.
Accordingly, SteelOrbis has learned of a fresh tender for 30,000 mt of steel billet closed by one of main steel producers in Iran at $540/mt FOB BIK, for March shipment, down $30/mt compared to the price fixed in the tender closed in the first half of January and at least $15/mt lower compared to the market price level last week. The material is said to be destined for the Gulf Cooperation Council (GCC). “That deal at such a low price would only signal the aggravation of the situation,” a UAE-based trader stated with regard to the abovementioned booking. “The markets are undergoing a correction. Nevertheless, it had to happen. Now we just need to see whether it will be a sudden crash or what else,” another Emirati trader commented.
In Asia, bids from Thailand have been heard below $570/mt CFR, which corresponds to below $540/mt on FOB basis. “The market is dead [in SE Asia] as customers are waiting for further developments,” a source said.
Meanwhile, the latest ex-Iran slab deal has been done at $615/mt FOB BIK, $24/mt below the level achieved in the previous tenders last week. The new price translated to about $647/mt CFR or slightly higher to SE Asia.