Iranian billet export activity has been rather slow lately with no new deals reported. The main reason is the weak interest of customers in the main destinations and the fact that buyers’ workable prices do not currently match suppliers’ targets.
However, Khouzestan Steel Company has lately announced a 30,000 mt billet tender with delivery within one month after 20 percent prepayment is received. Most market players believe it is for early July delivery and to be shipped from BIK port. The latest SteelOrbis weekly reference price for ex-Iran steel billet was at $475-480/mt FOB and for now it remains at this level. However, most sources agree it would be hard for mills to sell at this level.
In particular, in the Asian region, the estimated workable price for ex-Iran billet is hardly above $505-510/mt CFR, with freight estimated at a minimum of $40/mt. In the GCC, several buyers are reported to be pushing for $490/mt CFR, versus $500-510/mt CFR in offers. The freight rate in the Persian Gulf stands at around $20-25/mt to Omani ports or Jebel Ali.