Export Billet Prices Climb Amid Higher Offers, Transactions

Iranian export billet prices went up by $5-15 per ton on an FOB basis in the week that ended Feb. 21 with higher offers being accepted by customers.

Metal Bulletin’s weekly price assessment for Iranian billet exports was $495-510 per ton FOB on Feb. 21, against $490-495 per ton FOB a week earlier.

Late last week, offers of Iranian billet were reported within the range of $495-510 per ton FOB, depending on delivery and payment terms.

The latest available March-produced billet was sold at $495-500 per ton FOB, sources told Metal Bulletin, adding that countries in the (Persian) Gulf Cooperation Council were the principal destination for the material.

In addition, a 70,000-ton cargo of May-delivery billet was sold by an Iranian mill to the same destination at around $500 per ton FOB, including 40% prepayment. Traditionally, Iranian mills take prepayment of 20-30% but in this instance the price is likely to be $10 per ton higher, according to a well-informed source.

Another cargo of Iranian billet for prompt shipment was reported booked at a price close to $510 per ton FOB.

Iranian suppliers continued to increase their offer prices, supported by the fact that customers have accepted higher prices as well as the positive sentiment in the global semi-finished steel market.

Recent offer prices for April billet were heard within the range of $510-520 per ton FOB southern ports of Iran.

The weekly Iranian export price assessment for steel slab was unchanged at $505-510 per ton FOB on Feb. 21 with no new offers being heard in the market.

Customers in Southeast Asia expected Iranian mills to come up with new tenders this week, however. The expected price was $530 per ton CFR Southeast Asia, equivalent to around $500-505 per ton FOB southern ports of Iran.