Iranian suppliers have remained active in their steel billet exports, though their efforts to increase prices in the most recent negotiations with buyers have not been successful. As a result, deals for up to 90,000 mt of billet have been recently closed at the level corresponding to the lower end of the previously valid price range.
According to sources, one of the Iranian producers has just closed a tender for 30,000 mt and accepted a price of $465/mt FOB, while some buyers’ bids were a bit below $460/mt FOB. The cargo is said to be ready at Bandar Abbas port for shipment.
Another producer is also reported to have closed an agreement though the commodity exchange to ship 60,000 mt of billet in six even lots during the next six weeks. The price in the agreement is again $465/mt FOB.
Asia is still seen as the most promising sales outlet for Iranian billet in terms of price. The latest reported transaction level is at $498/mt CFR via a trader, while in the GCC the price for Iranian billet “would hardly fly over $490-495/mt CFR”, one source commented.
Overall, producers are aiming to sell billet abroad at $470-475/mt FOB, but such prices, according to sources, may be achieved either for modified grades, or by the first-tier producers whose material is normally higher-priced.