Some movement seen in Iranian billet export trade

Friday, 26 January 2024 15:01:35 (GMT+3)   |   Istanbul
       

According to sources, at least one Iranian billet producer managed to close an export tender earlier this week at a price quite higher than most of the bids from trading companies. As a result, the latest workable prices for ex-Iran billet have been set slightly above the most recent reported deals. Still, the lower end of the previous range is considered workable for second-tier mills and IF-based suppliers.

The market players reported that Chadormalu Mining and Industrial Company sold 30,000 mt for March delivery at $492/mt CFR, while other information circulating in the market indicates that Sirjan Jahan Steel Company also traded a similar lot at the same price. However, the latter has not been confirmed by the time of publication.

As a result, the workable price level for ex-Iran billet is at $480-492/mt FOB, up $2/mt from the higher end seen last week. Some offers for IF-billet have been reported at $478/mt FOB, while it is generally believed that the first-tier mills will be successful in selling at the upper end of the range. In particular, there are some opportunities to sell to Asian markets, where ex-Iran offers have increased by $5-10/mt over the past week to $530/mt CFR Indonesia. Despite the increase, some market players believe there could be some transactions as there are not many cheap options available.

In the domestic market, billet offers in Iran’s IME are at IRR 21,500-22,100/kg ex-works including VAT, which is around $390-400/mt ex-works, according to the unofficial exchange rate at $1 = IRR 55,500.


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