Iranian mills remain active in terms of their attempts to trade square billet on exports, but the general market trend globally continues to weigh on their pricing. Slower business and lower workable price levels in several key destinations, together with declining scrap prices, have resulted in lower bids for ex-Iran billet and some of these have been accepted by large suppliers.
According to sources, Iran’s Khouzestan Iron and Steel (KSC) has sold large lots this week, 20,000 mt at $515/mt FOB and 30,000 mt at $512/mt FOB. Both cargoes are for May shipments. Prior to that, a total of 60,000 mt was sold to traders for two other Iranian mills at $518/mt FOB, as SteelOrbis reported earlier. As a result, over the past week the ex-Iran workable billet prices have decreased by $25/mt on average.
Some of the sources believe the new deal prices may dip further due to buyers’ pressure, the unfavorable situation in Asia, the pessimistic outlook for the GCC market for May, and the currently negative expectations for scrap. Particularly, some of the market players share the opinion that the workable levels for ex-Iran may fall below $500-505/mt FOB, especially if the situation in China remain on the negative side.
