Iran’s billet sales closed at unexpectedly high levels

Friday, 03 May 2024 14:09:18 (GMT+3)   |   Istanbul
       

Several Iranian mills, which have been trying to conclude billet export sales over the past couple of weeks, have disclosed the information regarding their sales. However, the market has been surprised somewhat by the rather high price levels and the market sources tend to explain this by either special contract conditions or by hopes that support will come from the Asian market.

According to sources, Khouzestal Steel Company has lately closed a deal for 30,000 mt of billet at $478/mt FOB, while Esfahan Steel Company has traded another 30,000 mt at $480/mt FOB, both for early June shipments. “Demand is low in both domestic and export markets and these are prices announced by the sellers, which seem to be high. They sold billet, but there may be some customer preferences either spec-wise or for urgent delivery,” a source told SteelOrbis. Another supplier, Khorasan Steel Company (KSC) seems to be about to finalize a deal for 20,000 mt at $475/mt FOB, market players say. Induction furnace billet is on offer at around $420-440/mt FOB.

While most of the export destinations do not look promising, Iran seems to count on a certain revival in Asia. According to sources, 30,000 mt were sold to Indonesia at $505/mt CFR from a previous position, with up to $35/mt in freight. The new offers are at $515/mt CFR, SteelOrbis has learned.

In the GCC, ex-Iran billet prices are at around $500-505/mt CFR or $515-520/mt CPT, while buyers are pushing for small discounts. In Turkey, the latest ex-Iran billet offers have been set at $510/mt delivered to the Karabuk and Iskenderun regions. Offers to Jordan are at $520/mt CFR, sources say, but buyers insist on some discounts.


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