With sentiments towards the future prospects in the global steel market remaining mixed, the key Iranian producers have continued to abstain from giving firm offers for steel billet. At the same time, the major buyers of ex-Iran steel billet are less active in bookings for the same reasons. Consequently, an export activity of ex-Iran steel billet has remained muted this week. “The silence still remains, as well as the price range,” a market source stated.
Nevertheless, given the absence of trading at previous levels, SteelOrbis has decided to lower its assessment for ex-Iran steel billet to $450-455/mt FOB, down $5/mt from previous levels. Apart from that, a decline in assumption of workable prices for ex-Iran billet in Asia can be regarded as a proof of bearish sentiments. Specifically, according to market sources, the highest possible price for ex-Iran billets in Thailand would be $510/mt CFR versus last week’s offers at $515-530/mt CFR, taking into account the current freight rate from Iran to Asia is assessed at $60-65/mt. “As long as Russians dump in the market, no one can revive their sales. Sellers in Iran would sell at $460/mt FOB, but China, which has been the key destination so far, absolutely cannot absorb this level. It seems, buyers in other regions likewise,” a market source stated.
As SteelOrbis reported earlier, the traders have been struggling to increase their offers of ex-Iran billet to GCC to $530/mt CFR, up $50-55/mt compared to the levels, achieved in previous deals. Nevertheless, as the situation in the rebar segment in the GCC region has failed to improve so far, the success of billet suppliers remains doubtful so far.