Iran-based steel producer Sirjan Jahan Steel Complex (SJSCO) has recently floated a fresh export tender for the regular volume of billet which is 30,000 mt. The delivery term is set as the first half of October and the deadline for bids is Tuesday, August 30.
The indicative price level for ex-Iran billet is estimated at $450-455/mt FOB, while there are certain doubts the levels will be widely accepted by the buyers. The price was earlier considered workable in the GCC region, where the offers for Iranian origin of billet were at up to $530/mt CFR. However, after the rebar price decline, announced by UAE’s Emirates Steel Industries on August 25, the workable billet price in the region is expected to be under pressure. Some of the sources expect $500/mt CFR from Iran, while some foresee $480/mt CFR. The freight within the region is estimated at around $30/mt.
In Asia, the sentiment in the import billet segment remains bearish for now as the demand and the buyers’ bids are at low levels. In Thailand, there are offers from traders for distressed Iranian billet at $505/mt CFR for prompt shipments. In the meantime, the ex-Iran billet to be shipped in September and onwards is available at $515-520/mt CFR Thailand. The average freight to Asia from Iran is estimated at up to $65/mt.