Following the return to business after the Nowruz holiday on March 21- 24, Iranian steel billet exporters have returned to the market. Specifically, this week all major Iranian billet producers have floated export tenders. Nevertheless, with a certain decrease in buying interest, in particular from China, sentiments among participants in the Iranian billet market are mixed.
Accordingly, while major Iranian steel producer Khouzestan Steel Company has floated a tender for 40,000-50,000 mt of steel billet, for delivery at the end of May, while another major Iranian steel producer Chadormalu Mining and Industrial Company has opened a tender for 30,000 mt of steel billet, for delivery in the middle of May. Earlier, at the end of last week, Iranian steel company Sisco (Sirjan Iranian Steel Company) opened a 20,000 mt steel billet tender. With the deadlines in some tenders having expired, certain rumors have spread in the market. In particular, there has been talk in the market that one cargo was sold at $720/mt FOB, but the information has not been confirmed so far. Another producer has reportedly closed its tender, but asked company representatives not to publicly announce the results of the tender. “There is much material offered within the scope of tenders, but not many customers have been taking part in them,” a representative of an Iranian steel mill stated.
Last week, SteelOrbis’ assessment for ex-Iran steel billet was at $680-700/mt FOB.
Meanwhile, traders have continued to succeed in trading ex-Iran billet, given its price competitiveness compared to offers for billets of other origins. Specifically, two cargoes, for 42,000 mt of ex-Iran billet, which were initially destined for China, were offered to Asia. In particular, one cargo for 20,000 mt was already booked to Thailand at $750/mt CFR, while an offer for another 22,000 mt is still valid, following the refusal of a buyer in Indonesia to book it at $770/mt CFR. Another cargo for 30,000 mt of ex-Iran billet has changed hands also to Thailand at $760/mt CFR, for May shipment. As SteelOrbis reported earlier, ex-ASEAN billet in the region has been available at $820-830/mt CFR, while ex-Russia billet offers have been heard at $780-795/mt CFR.