Fresh ex-Iran bloom and billet tenders closed, fall in prices not excluded

Wednesday, 13 July 2022 17:18:20 (GMT+3)   |   Istanbul
       

By the middle of the current week, details of fresh ex-Iran semi-finished steel tenders have come to light. According to reliable market sources, Iranian steel mill Esfahan Steel Company (ESCO) has closed its auction for steel bloom of 200 mm at $520/mt FOB, while another Iranian steelmaker Sirjan Iranian Steel Company (SISCO) has booked steel billet at $500/mt FOB, which is $5-10/mt lower than the general expectations. The destinations of the sales in question have remained undisclosed by the time of publication, though, given the price levels, the material may be destined to be shipped to Southeast Asia, where the situation is currently slightly better compared to that in China. Specifically, as SteelOrbis reported earlier, the workable level for import billet in China has declined to $510-520/mt CFR, which corresponds to $450-460/mt FOB levels for ex-Iran steel billet, considering the freight rates. In the case of shipment of ex-Iran material to Southeast Asia, the additional costs, including freight and finance, will be not lower than $60/mt.

Overall, market players have remained mostly sceptical towards any positive changes in ex-Iran export trading. “The market is very negative and domestic sales are more profitable right now,” an Iranian market source stated. It is noteworthy that, besides the tenders mentioned above, ex-Iran billet sales at $480-490/mt FOB have been discussed in the market, though the information has remained unconfirmed so far.


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