Traders lower their billet prices in Iran

The previous reductions in prices of billet from CIS suppliers seem to have finally influenced the Iranian domestic billet market, while the high inventories of billet especially in northern Iranian ports constitute another factor which has forced local traders to reduce their prices. In addition, the strong levels of competition among Iranian traders of billet also needs to be taken into account. Furthermore, there are many small meltshops in Iran which produce billet at lower prices than the current price levels of CIS origin material.
 
Local Iranian traders who import billet from the CIS have finally reduced their prices following several weeks of resistance. Local traders are currently offering ready stock CIS billet of 125 x 125 mm to 150 x 150 mm sizes at about $630-670/mt ex-stock Iranian northern ports, down from $650-690/mt about two weeks ago and also down from $640-675/mt about four weeks ago. Ukranian origin ready stock 125 x 125 mm - 150 x 150 mm billets are now standing at about $620-630/mt ex-stock Iranian southern ports, down from $640-650/mt two weeks ago and at the same level as four weeks ago.
 
CIS billet suppliers have kept their prices for Iran unchanged over the last two weeks, even though they have been unable to attract significant order volumes. At present, CIS suppliers are offering 125 x 125 mm to 150 x 150 mm billets at $640-650/mt CFR Iranian northern ports for production in March and shipment in April, which is at the same level as two weeks ago but is down from $680-690/mt about four weeks ago. Of course, the rising trend in oil prices in the last few weeks (against the background of political developments in certain North African and Middle Eastern countries) as well as the trend of iron ore prices may cause Iranian buyers to be concerned that steel prices may go up again in the coming period. Such concerns may encourage local buyers to place more orders in the weeks ahead, especially if the rising trend of oil prices continues.