While the global semis market has been fluctuating price-wise, particularly due to the latest rather unexpected price surge in China, Iran has floated new export tenders, intending to keep prices stable at least.
Iran’s Khouzestan Steel Company (KSC) has floated a billet tender at 20,000-50,000 mt for end-of-December cargo readiness, with a deadline of October 8. The previous deals were closed by Iranian companies at an average of $453/mt FOB for late November shipment. Some sources have reported offers from smaller EAFs at $450/mt FOB for November shipment. “Sellers hope higher Iranian billet prices may be accepted due to China’s bullish mood, but the truth is it can work for the GCC, maybe for Turkey with small truckloads, but it’s doubtful for Asia,” a trader told SteelOrbis. The latest offers from Iran to China have been reported at $505/mt CFR, which is not considered workable. The CFR billet indications within the Asian region are at $500-510/mt CFR. However, this level is a follow-up to China’s earlier export price surge and has not been confirmed in actual deals just yet.
In addition, KSC has launched a slab export tender, again for 20,000-50,000 mt for mid-December cargo readiness, with a deadline of October 8. The latest reported steel slab prices have been at $432/mt FOB as per the sales of Mobarakeh Steel Company for up to 150,000 mt, according to market information. The lots are most probably destined for Asian markets, where the estimated price of $480/mt CFR should be quite workable.
