The recent imposition of export tariffs on various products, including steel billet, by Iran's government has caused serious confusion among Iranian steel producers who are now seeking ways to continue export trading in the future. “It seems that Iran's exports will halt for a couple of months at least,” a source commented with regard to the country's new export policy. While some Iranian steel mills have decided to postpone the deadlines of tenders, other producers have opted to exit the export market until the situation becomes clearer. Nevertheless, by the end of the current week, the results of two tenders have been leaked to the market. In particular, one tender for 40,000 mt of steel billet, for May shipment, has been closed at $695/mt FOB, while another auction for 30,000 mt of steel billet, for May shipment likewise, has been closed at $696/mt FOB. The grade of the material in the latter tender is said not to be base, hence the price includes a certain premium.
Although ex-Iran steel billet prices have increased to $695-700/mt, versus $688-695/mt FOB previously, the current levels are lower than Iranian suppliers were targeting in their sales this week. Specifically, at the beginning of the current week some Iranian sources had evaluated tradable levels for ex-Iran billet at above $700/mt FOB.