Although steel export trading from Iran has remained highly challenging due to the nationwide anti-government protests, Iranian steel suppliers have remained quite active in negotiations lately. In particular, a few exporters have succeeded in securing orders at their targeted prices. Specifically, one cargo of 20,000 mt of ex-Iran steel billet has been booked at $460/mt FOB, for delivery within one month. The material is reported to be destined for shipment to the GCC region, with freight estimated at $15/mt in the case of shipping by barge, as the customer is said to have planned. “It is truly an attractive price. I guess it will be impossible to find such levels in future deals,” a major market source in the GCC region stated. Subsequently, another Iranian exporter booked a cargo of steel billet at $463/mt FOB. While the destination has not been disclosed by the time of publication, some market sources have reported that the material is destined to be shipped to Southeast Asia, with freight estimated at $40-45/mt, while another reliable source assumes that the cargo may be for a European customer. “A certain degree of success has been achieved recently. It relates to prices as well as to new destinations,” a market source commented regarding the latest developments.
Given the above information, SteelOrbis’ reference price for ex-Iran steel billet has settled at $460-465/mt FOB, up $5-10/mt compared to the transactions done last week.
Furthermore, SteelOrbis has learned of an ex-Iran steel slab sale at $425/mt FOB, likewise up around $5/mt compared to the previous tender. Although the material in the deal in question is said to be destined for Europe and, concurrently, a sale of ex-Iran slab to Italy at $550/mt CFR has been discussed in the market, the information has not been confirmed by the time of publication. The current freight rate from Iran to Italy is estimated by traders at around $65/mt.