Several export billet tenders are afloat in Iran these days and one of them has recently resulted in a sale of a large volume. The disclosed price is evaluated by many as a quite high one, taking into account the currently low global billet prices, particularly from Asia.
According to sources, Esfahan Steel Company (ESCO) has managed to trade 30,000 mt abroad at $465/mt FOB for October shipment. Most of the sources assume the workable price level for ex-Iran billet should be closer to $450/mt FOB, taking into account that the latest workable prices in Asia were at $440-445/mt FOB. Still, the mentioned cargo is said to be most probably sold to Africa, where the prices might be somewhat higher than the global ones, given the payment issues and complicated logistics.
In the GCC, the price of $465/mt FOB equals to around $485/mt CFR and such a level seems not to be workable among the buyers from the UAE and Oman. Some sellers count on transactions with around $5/mt discounts to these destinations, while in Asia there seems to be no chance to sell at the current price levels. Some bids have been reported at $420/mt FOB for IF billet from the MENA region-based buyers, while EAF billet has been asked for in Africa at $440/mt FOB for 10,000 mt.
In addition to ESCO billet sale, currently Chadormalu Mining and Industry is having a tender for 30,000 mt with the validity until September 10, 2024. The cargo is for mid-October deliveries. Sources report that Khorasan Steel Company has also floated a tender for a similar volume.