Major Iran-based steel producers have remained active in billet exports even though buying activity in the key destinations has remained relatively calm. One Iranian mill has lately sold a large cargo with a slight price increase. Some market players assume that Russia’s recent export tax imposition may have supported interest in ex-Iran semis.
Esfahan Steel Company has lately closed a 30,000 mt export tender for 3SP 150 mm square billet with the cargo to be shipped in the second half of November, SteelOrbis has learned. The deal price reported in the market stands at $477/mt FOB BIK. The supplier’s previous transaction price was at $473/mt FOB in the middle of September.
In addition to ESCO, Iran’s Chadormalu Mining and Industrial Co. has put 30,000 mt of billet up for sale in an export tender, again for late November delivery and to be shipped from Bandar Abbas port. The tender is valid until October 9.
Overall, Iranian billet availability for export is still not plentiful, partially since the mills are aiming to adjust to the recently imposed two percent export tax. However, the number of tenders may increase in the short run as the “seasonal electricity issues are coming to an end,” according to one market source. However, others report that restrictions on natural gas usage may be in place from November.