The steel billet export trade from Iran has been muted during the past week due to the Persian New Year (Nowruz) celebrations held on March 21-24. However, by the end of the given period Iranian suppliers have started to gradually return to the market.
Accordingly, one leading Iran-based mill has opened a fresh export tender for 30,000 mt of steel billet, for early May shipment. The supplier is aiming to sell the material not later than Monday next week and, concurrently, to obtain a price not lower than $560/mt FOB BIK. Before the holiday, the same steel producer in Iran closed a tender for the same volume of steel billet at $550/mt FOB BIK, for April shipment, as SteelOrbis reported earlier.
In the meantime, demand for import billet in China, which is one of the key destinations for ex-Iran billet, has improved noticeably over the past week, with Chinese buyers accepting significantly higher prices for import material, largely due to the price surge in the local market. In particular, the positions of suppliers have been boosted by the production cuts announced in Tangshan. Accordingly, the prices in the most recent deals for Asian billet in China have exceeded $620/mt CFR, increasing the workable level for ex-Iran billet up to $600/mt CFR and slightly above.
The business environment in Southeast Asia is said to be not so favourable, with bids for ex-Iran steel billet from customers voiced mainly far below $600/mt CFR. “It is hard to find a buyer even at $590/mt CFR in Indonesia and Thailand,” an Asia-based source commented. The freight cost from Iran to Southeast Asia is estimated at at least $34/mt.