Amid the accelerating price increases in Turkey lately, Iranian steel billet suppliers have stepped up their efforts to raise prices in coming deals. However, so far such efforts have failed to yield any results. “Mills have pushed up their offers, but with no takers so far,” a major Iranian source stated. “Iranian mills are desperately trying to raise prices. They are still very low,” another source said, adding that a few customers have voiced bids even below the levels fixed in previous trades. Specifically, this week a few customers are reported to have been trying to get $420/mt FOB BIK.
Meanwhile, SteelOrbis has learned of a recent 40,000 mt 130 mm billet sale done by the major Iranian steel mill to the GCC, at $470/mt CFR. With freight assessed at around $30/mt, the FOB price is estimated to be $440/mt. The price is around $20/mt lower than the supplier managed to get in a sale last week. In addition, this week another billet cargo for 40,000 mt has been sold by another Iranian steel mill at $500/mt CFR to Indonesia, with the FOB price estimated at $440/mt FOB likewise, taking into account the freight rate at $60/mt.
Given all the above prices, SteelOrbis’ assessment for ex-Iran steel billet has settled at $440/mt FOB compared to $440-460/mt FOB last week.