Iran has continued selling billet via export tenders, with another tender closed lately. However, Iranian producers are finding it hard to increase the workable prices. The negotiations with Turkish and GCC region-based buyers are underway, though it seems that buyers’ and sellers’ price ideas do not match.
According to sources, one of the Iranian mills has lately closed a tender for 30,000 mt of billet at $487/mt FOB for a cargo to be ready at the end of Januaryy. Previously, one of the key producers had closed a sale at $490/mt FOB, but for 1sp grade, which has an extra. In addition, a third Iranian producer has had a tender for 30,000 mt of 3sp/5sp square billet, aiming to sell at $490/mt FOB, but has failed to get the price from customers.
In Turkey, some of the billet offers have been reported at $510-515/mt delivered to the Iskenderun region, versus $500-505/mt CFR bids from some of the re-rollers. “Scrap is unstable in Turkey and all [prices] might go down, also because there is not much demand for longs yet after the holidays,” a trader told SteelOrbis. In the GCC, namely in the UAE and Oman, billet offers from Iran have increased by $5-10/mt over two weeks to $525/mt CFR, partly backed by the upward moves of the domestic rebar suppliers.
In Asia, the latest deal from Iran had been closed to Indonesia at $525/mt CFR. Taking into account the improved moods and prices for billet in the region overall, sources expect that the trade of Iranian billets to Asia may have support. At least, suppliers will have more ground to resist the downward pressure from buyers.