Despite strong reluctance from traditional buyers and, apart from that, the absence of any deals lately, Iranian billet producers have continued to test the market with higher offers. Nevertheless, some information which surfaced and was actively discussed in the market this week appear to have turned out to be just a rumor. Specifically, information about an ex-Iran tender closed in the range $540-550/mt FOB has remained unconfirmed by the time of publication. The recent offers of ex-Iran billet to Thailand at $580/mt CFR may mean that the sellers have just evaluated the workable prices for buyers, without any apparent bookings yet. “There was no fresh deal lately, the mill [Khouzestan Steel Company] wants over $540/mt FOB but bids are lower,” a reliable source stated. “I haven't heard any deals at $540/mt FOB or around and, from today's view, I am glad I did not participate in a higher bid. Italy decreased its domestic wire rod price. Scrap is also under some pressure. Moreover, I am not so certain that China will be strong after the holidays. It already moved up quite a bit before the holidays,” an international trader stated.
By the end of the current week, another Iranian billet mill claimed to have bids on the table at $560/mt FOB. However, given the information above, the producer appears to be speculating on the tightness of supply, exerting pressure on potential buyers with overpriced offers.