As expected, Iran-based billet suppliers have continued to raise their export prices, aiming to gain as much advantage as possible from the booming demand for billet in China.
Accordingly, lately a cargo of 30,000 mt of ex-Iran steel billet was booked at around $668/mt FOB BIK, up by almost $50/mt compared to the most recent tender closed by another major Iran-based supplier in late April. Taking into account that the material is destined for China, the CFR price is estimated to be around $715-720/mt CFR China, with freight estimated at $47-52/mt.
Moreover, China’s billet demand, which is expected to remain strong in the coming week, is giving Iran-based suppliers a significant confidence boost in their attempts to push their prices up further.