Iranian steel billet producers have maintained their efforts to push prices up even though the weak fundamentals in China have continued to undermine the certainty of market players regarding any likely success.
Lately, two cargoes of ex-Iran steel billet for 40,000 mt and 30,000 mt have reportedly changed hands at $462/mt FOB and $465/mt FOB respectively. Although unconfirmed by the time of publication, the prices linked to the market are in line with the prices initially targeted by the suppliers. Although the destination remains unspecified so far, the material may be shipped to the GCC region, where prices are higher than in Asia now. According to market sources, the latest offers of ex-Iran steel billet to the UAE have been heard at $510/mt CPT this week.
Last week, a major Iranian steelmaker Khouzestan Steel Company is reported to have sold a 40,000 mt cargo of steel billet at $455/mt FOB. The material is supposedly destined to be shipped to China, though the feasibility of the deal in question, namely to China, remains doubtful given the current workable levels there. According to SteelOrbis' information, the latest bids from Chinese customers have been voiced at $470/mt CFR, compared to $490-500/mt CFR last week. The freight from Iran to China is assessed at $60/mt in addition to the costs for financing the transaction.
This week, the reference ex-Iran billet price has increased to $460-465/mt FOB, compared to $450-455/mt FOB last week.