Weak trend in Iranian billet market as CIS suppliers reduce prices again

CIS suppliers have reduced their billet prices for export to Iran during the last two weeks. At present, they are offering 125 x 125 mm to 150 x 150 mm billet at $630-645/mt CFR Iranian northern ports for production in April and shipment in May, which is about $10-15/mt lower than their offers given in February and about $50-60/mt down on their offers given in January. Anticipations of possible further price reductions mean that local buyers are not inclined to place orders even at the existing reduced price levels.
 
The local Iranian traders who import billet from the CIS have not reduced their prices so much in the last two to three weeks despite the declines in billet prices from CIS suppliers. Local Iranian traders are currently offering ready stock CIS origin billet of 125 x 125 mm to 150 x 150 mm sizes at about $630-660/mt ex-stock Iranian northern ports, down slightly at the upper end from $630-670/mt two weeks ago and down from $650-690/mt about four weeks ago. Ukranian origin ready stock billet of 125 x 125 mm - 150 x 150 mm sizes is now being offered at about $610-620/mt ex-stock Iranian southern ports, down from $620-630/mt two weeks ago and also down from $640-650/mt about four weeks ago. The need for cash has also forced some traders to sell their billet stocks at prices less than the abovementioned levels.
 
Nevertheless, the rising trend of oil prices in the last few weeks resulting from the political upheaval in Arab countries may provide support for CIS billet suppliers to maintain or even raise their prices; however, at the same time the political situation in Arab countries could also exert a negative impact on billet demand from the Middle Eastern and North African countries.