Iran-based steel billet producers have continued to draw as much advantage as possible from the positive situation in the global steel market, pushing up prices in each new tender. Moreover, following the recent announcement of changes in China’s tax policy, in particular, cutting the existing two percent import duty for steel billet from non-ASEAN countries, Iran-based billet suppliers have not been in a hurry to accept less-than-desirable prices for their products. Subsequently, coming towards the end of the current week one of the main steel producers in Iran has managed to close a tender at its targeted price.
Accordingly, lately a cargo of 30,000 mt of ex-Iran steel billet, for shipment in the middle of June, has changed hands at $620/mt FOB BIK. The material is destined to be shipped to China. However, at the beginning of the current week, bids were voiced largely at $600-618/mt FOB, as SteelOrbis reported. Meanwhile, early this week another Iran-based supplier closed a tender for the same volume of steel billet at $599/mt FOB BIK, for shipment at the end of May-beginning of June, up $20/mt compared to the price achieved in a tender closed by the seller in question in the middle of the current month. The material in the most recent tender is destined to be shipped to China, with the freight rate being estimated at $50-55/mt. “We believe that in a few days billet prices will surge further,” one supplier said.