Aiming to take full advantage of the quite positive developments in the global steel market, Iran-based producers of steel billet have continued to push prices up in each new tender. Accordingly, although the buying boom in China, which is one of the key destinations for ex-Iran billet, lost some momentum in the beginning of the current week due to the fall in domestic prices, Iranian producers have continued to see strong interest in their material from international traders. This could serve as an indicator that the deterioration of demand in China is considered to be temporary.
SteelOrbis has learned of the most recent ex-Iran billet tender for a 30,000 mt cargo at $579/mt FOB BIK, for May shipment, with the destination not being disclosed. As SteelOrbis reported previously, last week the tenders were closed at $570-571/mt FOB BIK.
Meanwhile, traders have been offering ex-Iran billet to Thailand mainly at $640/mt CIF, for payment by letter of credit, with some of them being ready to sell at $625/mt CIF, market sources report.