Iranian billet shows unexpected price increase

Tuesday, 06 February 2024 17:57:45 (GMT+3)   |   Istanbul
       

Billet export prices from Iran have shown a rather unexpected increase in both bids and deal prices closed by first-tier suppliers. Most sources believe that the material will be directed to African buyers or maybe to some customers in the GCC region. However, the price level is not yet workable for such a major destination as Asia.

According to sources, a major Iranian semis exporter has lately traded around 30,000 mt of billet for March delivery at $510/mt FOB, which is considered a little overpriced as of today. In addition, there have been bids reported to Sirjan Jahan mill at $500/mt FOB, while the previous deals from Iran have generally been slightly above $490/mt FOB. In addition, induction furnace-origin billet is on offer for export at $470/mt ex-works.

Market players assume that the billet sold at $500-510/mt FOB from Iran will most probably be directed to East Africa, particularly to Ethiopia and Kenya. “Last week, some buyers in East Africa were looking at 555-560 CFR Mombasa for Indian induction furnace billets,” a source told SteelOrbis. The freight from Iran to East Africa is estimated at around $45-50/mt.

In the GCC, some offers from Iran have been reported at $495/mt FOB from previous positions, which translates to around $510-515/mt CFR. Some suppliers, however, are offering at above $520/mt CFR as of today.

In Asia, bids for ex-Iran billet are not above $520-525/mt CFR or around $490/mt FOB, meaning that anything above $500/mt FOB would be not yet workable in this region. In Egypt, Iranian billet prices are at $550/mt CFR, with no deals reported, while in Turkey offers have been heard at $525-530/mt DAP Karabuk.


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