Following the Iranian New Year holiday, a couple of Iranian mills have succeeded in closing their tenders for billet, with prices declining as expected. Moreover, some additional decline is anticipated, given the generally negative global market trend and buyers’ low bids.
According to sources, the latest billet sale, for 15,000 mt, has been concluded this week by Sirjan Jahan Steel Company at $477/mt FOB, for May shipment, while some bids were even below $470/mt FOB. The cargo is expected to be directed to the GCC market. Prior to that, Khouzestan Steel Company is reported to have sold 30,000 mt of billet at $483/mt FOB, although some market players considered this price level exaggerated even at the time. During the tender, some bids were reported at $475-480/mt FOB for billet and $465-470/mt FOB for slab, SteelObis has learned.
Given the seasonally weak market in the GCC and declining billet prices in Asia and Turkey, most market players expect ex-Iran billet prices to move down further. “Apparently, the new billet bids are at low levels, so it seems there is either no sale or there were sales with no announcements. But the logical level in my point of view is now lower than $475/mt FOB,” a market source told SteelOrbis.
In addition, there are export offers for induction furnace billet from Iran at $450/mt FCA border and at slightly below $465/mt FOB Bandar Abbas.