Iranian billet suppliers have decided to cut prices, seeing inquiries from China, while demand for ex-Iran semis has been slow recently. SteelOrbis has been informed of the sale of 50,000 mt of Iranian billet to China at $385/mt CFR for October shipment. This level is equivalent to $350/mt FOB, and it is about $10/mt below offers heard in Southeast Asia early last week. Some market sources have said that more than one lot has been sold to China recently.
Moreover, there have been reports in the market that Chinese traders have been in negotiations with Middle Eastern suppliers at a level also below $400/mt CFR. As SteelOrbis reported previously, two cargoes of billet from Qatar were sold to China at above $400/mt CFR earlier this month. Some sources have said that this material can be traded in the Far East in the future due to its high price for Chinese consumers.