Ex-Iran billet prices have continued to rise, chiefly supported by the surge in demand in Asia, especially in China.
Accordingly, SteelOrbis has learned that on April 6 a leading Iran-based billet exporter closed a tender for a 30,000 mt cargo of steel billet for end-of-May shipment at $570/mt FOB BIK, having managed to increase the price by $10/mt compared to the most recent tender closed by another Iranian supplier a week ago. The material is destined to be shipped to China.
Following the most recent ex-ASEAN billet deals in China at $650-660/mt CFR, with new offers reaching $670/mt CFR afterwards, prices for ex-Iran billet are expected to move up further in new tenders, SteelOrbis believes. Non-ASEAN billet in China is subject to two percent import duty, which is worth taking into consideration.