Esfahan Steel Company (ESCO), one of the leading steel producers in Iran, has announced a fresh billet export tender following a couple of weeks of silence. However, given the rather weak global market sentiment, Iran’s billet export prices are under pressure in most regions.
In particular, ESCO is now accepting bids for 30,000 mt of 150 mm and 130 mm billet with the delivery term mentioned as the end of April. Most market sources believe the price for ESCO’s billet should be closer to around $410/mt FOB, since the steelmaker is considered to be a premium supplier. Overall, the workable level for ex-Iran billet, including from second-tier sellers, is evaluated at $400-410/mt FOB, while the latest large export deals were closed at $415-420/mt FOB. Some ready cargoes of IF billet from Iran have been reported at $395/mt FOB Bandar Abbas.
In Asia, according to sources, some Iranian billet suppliers have been trying to offer $450-455/mt CFR, or around $415/mt FOB, while buyers’ price ideas still stand at around $440/mt CFR. In the GCC, with the freight from Iran at around $15-18/mt, the CFR-based offer levels are estimated at $435-445/mt.
