Posted on 14 Sep 2023
Most Iranian mills are almost 20 days behind their production schedule due to power restrictions that have yet to be eased. This is compelling the producers to postpone billet export tenders until early October. The mills have been informed that power cuts will be lifted by the end of September, notes Kallanish.
"The mills are behind their production schedules; that's why billet availability is deficient, and we are struggling to meet the last shipment date (LSD) specified in the contracts," comments a reputable trading source.
Early this week, an Indonesian buyer was reported to have concluded a 150mm 5sp billet contract from Iran at $503/tonne cfr for late-October delivery. This came after ESCO closed its 150mm 5sp billet tender at $473/t fob Iran for end-October readiness.
"In 2022, out of nearly 7.3 million tonnes of semis [billet, bloom and slabs], 22% of Iranian semis were exported to Indonesia. China and Indonesia are Iran's best semis export markets," says a sector analyst.
Source:Kallanish
