Given the continued unfavorable business environment in the Asian steel markets, stemming chiefly from the sharp drop in futures prices in China, ex-Iran billet activity has been noticeably muted. Most Iran-based billet suppliers have abstained from accepting low prices, preferring to watch developments closely and to wait for prices to rebound.
Nevertheless, one trade at a price at least $23/mt below the levels achieved the previous week has been widely discussed in the market. Specifically, a deal for 30,000 mt of ex-Iran steel billet at $597/mt FOB, for shipment in December, is reported to have been done this week. The destination remains to be seen as the deal has not been confirmed by the time of publication. With the freight rate assessed at $55/mt, the CFR price for ex-Iran billet is close to the tradable levels in Southeast Asia, which have been settled at $650-660/mt CFR recently.