Iran-based steel billet suppliers have continued to benefit from the accelerating demand in China, stemming from curbs on the state's steel production, pollution and energy consumption.
Accordingly, on September 22 a major Iran-based steel exporter closed a tender for 40,000 mt of 5SP 150 mm steel billet at $635/mt FOB BIK, for shipment in the end of October. Meanwhile, another Iran-based steel mill has traded a 30,000 mt cargo of steel billet at $640.5/mt FOB this week. The price is said to be “a good one” under the current market circumstances, even considering that a week ago the same producer booked material at price around $10/mt higher. “The prior tender was closed on the back of a huge stir in the market, hence an overvalued price was accepted,” a market source commented. One more tender has been closed this week for 20,000 mt of steel billet at $640/mt FOB, for shipment within a month. The material in all abovementioned tenders is destined to be shipped to China with a freight being estimated at least at $65/mt.
According to market sources, in Thailand and Indonesia, traders have offered ex-Iran billet at around $700/mt CFR this week.
On balance, ex-Iran steel billet prices have remained unchanged during the past week, at $635-640/mt FOB, but with higher end of the range having been already fixed in deals.