Iranian steel producers have continued their attempts to sell steel billet in export markets and some of the first-tier mills have managed to negotiate some lots even with a slight price increase compared to the previously reported deals.
In particular, according to sources, 30,000 mt of commercial grade billet have been sold via a tender at $473/mt FOB and the cargo will be shipped at the end of October. The previous two billet export sales from Iran were closed at $465/mt FOB, but for a longer lead time and from non-leading suppliers.
The cargo is said to be destined for the further sale to Asia, where prices are more attractive to sellers and, most importantly, where there is stronger demand compared to the GCC. The freight to Asia is evaluated at around $25-30/mt for large billet lots and, in fact, the most recent deal for ex-Iran billet has been reported by the market sources at $503/mt CFR Indonesia for 30,000 mt, while at the end of last week some offers were voiced at up to $510/mt CFR. Prior to this, a deal had been reported to Thailand at $498/mt CFR.
In addition, there has been some activity at Iran’s commodity exchange. A 10,000 mt billet lot has been put on sale at IRR 21,500/kg ex-works including nine percent VAT which is around $470/mt ex-works based on the latest exchange rate. “Buyers should pay nine percent VAT and then claim the same from the tax office after they export,” a trader told SteelOrbis.