Iran’s billet export activity has been rather quiet as Ramadan continues, with only occasional transactions heard in the market. The workable prices are still considered quite high compared to buyers’ price ideas, but the situation strongly depends on the market targeted for billet sales by traders.
According to sources, Iran’s Chadormalu Mining and Industrial Company has recently sold 30,000 mt of billet via an export tender at $422/mt FOB. Sources explain that normally the supplier’s price should be around $5/mt lower than that, but, overall, in the market it is believed that the deal was in fact done. The general workable price level for billet from Iran is currently evaluated at $415-425/mt FOB.
The overseas demand for ex-Iran billet is currently quite slow. In the GCC, mainly Oman and the UAE, the offered prices for Iranian semis are at $445-455/mt CFR as per the results of the earlier closed export tenders. The local billet prices in these countries are at $480-485/mt delivered, which is currently preferred at least over Asian billet offered to the GCC mainly at $475-478/mt CFR. According to sources, Iran’s Esfahan Steel Company is the first Iranian mill to obtain the certificate of conformity for its billet in the UAE, while two other Iranian mills - SISCO and Khouzestan Steel Company - are about to receive approval as well.
In Asia, the most recent offers for Iranian billet have been reported at $445-450/mt CFR with no deals heard yet. The freight rate from Bandar Abbas to Asian ports is now estimated at around $35-37/mt.
