Economy, Business And Markets

Semis Export Prices Drop on Downtrend in Global Market

Semis Export Prices Drop on Downtrend in Global Market
Semis Export Prices Drop on Downtrend in Global Market

Iranian exporters of semi-finished steel products returned to the market after the Iranian New Year holidays late last month with price reductions that followed the trend in the wider global markets.

Metal Bulletin’s weekly price assessment for Iranian billet exports decreased to $500-515 per ton FOB on April 4 from the previous range of $515-530 per ton FOB.

Local producers Khouzestan Steel and Khorasan Steel opened tenders for July-shipment billet within the range of $515-520 per ton FOB, down by $15 per ton from the previous range.

No new bookings were heard done at the time of publication (Wednesday) because the tenders were expected to close on Friday.

Traders offered Iranian billet to customers in Egypt at $525 per ton CFR, equivalent to $500 per ton FOB. It was not immediately clear whether any bookings were finalized because some market participants expected CIS-origin billet to reach the same price soon.

The Iranian export price assessment for steel slab widened downward to $530-550 per ton FOB on April 4, against $545-550 per ton FOB last week.

Khouzestan Steel targeted a price of $550 per ton FOB for slab in its recent tender, referring to improved demand in the Southeast Asian market. But market participants said the workable price should be around $520-530 per ton FOB.

Customers in the region were looking for a price of $580-590 per ton CFR for non-Iranian material. Iranian material traditionally trades at prices $10-20 per ton lower than material from other origins due to problems with payments.

Meanwhile, Indonesia’s Gunung released a tender for 20,000-40,000 tons of slab, hoping to achieve a price of $560 per ton CFR.

The estimated cost of freight from Iran to Southeast Asia varies within a range of $20-30 per ton, depending on the size of the cargo.

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