Iranian export steel billet prices picked up in the week ended May 23 because of the limited volumes of material available for shipment before August, when renewed trading sanctions are expected to be enforced on the country by the United States.
The US withdrew from an international deal on Iran’s civilian nuclear program on May 8 and has said that it will reimpose its trading sanctions against the Middle Eastern country.
Recent bookings of Iranian billet for shipment in late July were done within the range of $500-505 per ton FOB, Metal Bulletin reported.
Notably, a 20,000-ton cargo was sold in Indonesia at $530 per ton CFR, equivalent to $500-505 per ton FOB.
Currently, all Iranian billet producers, except South Kaveh Steel, are sold out until the end of July.
Offers of billet from SKS for shipment in late June were reported at $515 per ton FOB. Last week, billet offers from Iran were reported within the range of $500-510 per ton FOB.
The new higher price will probably be accepted because customers need to book in advance, considering the uncertainty over the future of steel exports from Iran, market participants said.
Metal Bulletin’s weekly price assessment for Iranian billet exports was $500-515 per ton FOB on May 23, up from $490-503 per ton FOB a week earlier.
But the assessment for exports of Iranian steel slab was $510-515 per ton FOB on May 23, down from $520-530 per ton FOB a week earlier.
A cargo of Iranian billet was sold to Thailand last week at $541 per ton CFR, equivalent to $510 per ton FOB.
New offers of slab for export shipments in July from Khouzestan Steel Company were reported at $510 per ton FOB.
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