Billet export prices from Iran have once again weakened, given the rather unfavorable situation in terms of demand in the major consuming destinations.
According to sources, Chadormalu Mining and Industrial Company has recently closed a 30,000 mt export 3SP billet tender for end-of-May delivery. The price is $470/mt FOB, which is $7/mt lower than the previous sales price from Sirjan Jahan Company, reported before the holiday.
In addition, some position cargoes have been offered to Pakistan at $470/mt FOB Bandar Abbas for EAF billet, while IF material, according to sources, has been available at as low as $410/mt FOB. In Turkey, the latest offer levels have been heard at $507-510/mt CFR Iskenderun, which is quite workable, but not yet accepted by buyers. In the GCC, the indicative offer level from Iran is evaluated at $490-500/mt CFR and no deals have been reported.
In Asia, the indicative level is at $500/mt CFR from traders, but it is not workable due to the weak market in the region. However, as of today Asian market sentiment is more positive due to higher iron ore prices, and, if the trend is sustained, billet prices may increase, SteelOrbis estimates.