Iran floats new billet export tenders, price expectations weak

Thursday, 25 April 2024 14:45:25 (GMT+3)   |   Istanbul
       

A few Iranian mills have opened new billet export tenders, aiming to pull up deal prices slightly, citing the somewhat better mood seen in Asia. However, the workable price levels for Iranian billet are still considered to be below sellers’ expectations in most destinations due to buyers’ weak positions.

According to sources, Iran’s Khouzestan Steel Company (KSC) has floated an export tender for 20,000-50,000 mt of 3SP/5SP square billet, with the cargo expected to be ready by mid-June. The tender will be valid until April 28.

In addition, another steel producer, Sirjan Iranian Steel Company (SISCO), has also launched a tender, for 20,000 mt of 3SP billet for delivery no later than 40 days after receiving payment.

While the suppliers, according to market evaluations, may be aiming to sell billet at around $475-485/mt FOB, buyers are somewhat skeptical and foresee potential coming only from Asia, where suppliers had traded large volumes and are currently in no rush to sell. The previous reported deal was closed from Iran at $471/mt FOB, while several bids were below $470/mt FOB. Some market players believe that the workable prices for the prime quality Iranian billet may be fixed at $460-465/mt FOB, while some are even more pessimistic.

As for IF billet from Iran, the prices are much lower and some demand has been seen lately. According to sources, a small lot has been sold to East Africa at slightly above $430/mt FOB, while some bids have been placed at $425/mt FOB. In addition, a small buyer from North Africa has been looking to buy the mentioned material at $500/mt CFR, with freight estimated at around $70-80/mt.


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