According to sources, a large and one of the key billet producers in Iran has traded 30,000 mt of billet to be shipped in January at $490/mt FOB. The information has not been confirmed by the time of publication, but many market players believe the deal is done. The previous sale by another producer has been closed at $485/mt FOB. Overall, as of today the billet prices from Iran, including the second-tier mills, is evaluated at $480-490/mt FOB.
The mentioned cargo is supposed to be destined for a resale to Asia, where the billet offers for the regional origins have been at $530-535/mt CFR versus $525-530/mt CFR as maximum for BF/IF semis. In such a situation, ex-Iran offers to Asia should be at $520/mt CFR maximum, while the freight is estimated at around $40/mt.
In the GCC, the latest offers for ex-Iran billet have been reported at $515-520/mt CFR, but are expected to increase this week due to announced higher prices in the UAE. In Jordan, the offers from Iran stood at $520/mt CFR, while in Turkey the latest indications were at $520-530/mt DAP Iskenderun depending on the supplier.
In addition, a total of 45,000 mt of billet have been sold in the domestic market through the Iran Mercantile Exchange (IME) at IRR 19,500/kg which is around $460/mt according to $1 = IRR 42,275 official exchange rate.