Notwithstanding certain signs of bullishness lately, Iranian steel companies have continued to find rough to secure orders at desired prices as the business environment in their key consumption markets has remained highly challenging. Specifically, while at the beginning of the current week ex-Iran steel billet offers have been reaching $470/mt FOB BIK, by the middle of week a major Iranian steelmaker due to the certain resistance of buyers has been forced to accept $455/mt FOB BIK in its sale. “China is slowly moving up and news about the worldwide energy crisis brought some potential customers for Iranian billet. Obviously, Iranian mills have decided to seek higher prices. However, the latest rumor about sale at $460/mt FOB, for instance, has not been apparently confirmed,” a major market source commented.
Given all the information mentioned above, SteelOrbis reference for ex-Iran steel billet has lowered from previous $460-470/mt FOB levels to $455-460/mt FOB, with the highest end of range corresponding largely to target levels.