Despite quite a silent week, by the end of the week Iranian suppliers of steel billet have become more determined in searching for higher prices in new transactions. Although the situation in the major markets still remains unfavorable due to weak demand and lower bids, the positions of Iranian steel suppliers was damaged by the unfolding political turmoil in their country. “It is an utter mess for mills here now,” an Iranian market source stated. Nevertheless, the improvement of sentiments in the global scrap market has encouraged Iranian steelmakers to be more bullish.
The latest sale of ex-Iran steel billet confirmed by SteelOrbis was at $456/mt FOB BIK done by a major Iranian steel mill. Afterwards, Iranian mills are reported to have started searching for $460-465/mt FOB. “Without a decent margin I have no clue how to do business,” a market player stated. “Nobody appears to be accepting prices below $460-463/mt FOB now,” a market source stated. By the end of the current week, a few sales of ex-Iran steel billet at $463/mt FOB BIK have been rumoured, but with no confirmation so far.
Given all the information above, SteelOrbis’ reference price for ex-Iran steel billet has increased from the previous $450-455/mt FOB levels to $456-465/mt FOB, with the highest end of the range corresponding largely to target levels.