Increasing global quotes for steel raw materials and products have let Iranian billet exporters achieve an increase in deal prices for large batches, with suppliers being focused on the Middle Eastern market now.
Last week, Iran’s Khouzestan Steel Company closed a tender to sell 25,000 tons to the UAE at $400/ton FOB with shipment at the end of December, up by $45/ton compared to the beginning of the month. This week, KSC has been offering billet at $405/ton FOB, Metal Expert reported.
Esfahan Steel Company has also managed to achieve a $35/ton rise in deal prices, signing a contract with an Emirati customer for 25,000 tons of the material at $405/ton FOB with shipment in the second week of December.
At present, ESCO does not offer the material officially for export, trying to evaluate the situation in the market more carefully.
The Middle East stays the main sales outlet for Iranian billet exporters. “Local re-rollers buy local and Iranian billet, showing little interest in dealing with the CIS and China,” said a market player.
Regional buyers are not interested in Chinese square billet due to long lead times as well as unstable prices.
Russian material is nominally offered at $425/ton CFR, $5-10/ton above prices for Iranian billet with delivery to the Persian Gulf ports.
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