Following a relatively long period of silence in ex-Iran billet export sales, there have been two deals reported lately as closed by a first-tier mill. The concluded prices are on higher than expected and may not be workable in regular market destinations, though many believe them to be the actual transaction prices.
According to sources, Esfahan Steel Company (ESCO) has traded two billet lots, one at $507/mt FOB and another at $510/mt FOB. Some of the bids to the seller were in the range of $485-495/mt FOB and were naturally not accepted.
In addition, the Iranian authorities seem to have finally come to an agreement on export duties for semi-finished products and some raw materials. The market sources report that the export tax for billet and slab will be reduced to one percent, versus two percent previously. In addition, pellets and concentrate will be subject to one percent and five percent duties, respectively, both down from the previously valid 20 percent. This is expected to have more impact on the raw material trade, while it will hardly impact semis exports.