Posted on 05 Dec 2024
The Iranian domestic billet market has slowed significantly as production has been curtailed due to natural gas restrictions. Export prices are far from satisfactory due to declining values in the Far East, notes Kallanish.
Earlier this week, Iranian billet traders in their main export market, Indonesia, noted 150mm 3sp ex-China billet offers at $460-465/t cfr, while the Indonesian major cut its 150mm 3sp billet price to $460/t fob for late-February loading.
First ESCO and then KSC closed 150mm 3sp billet deals last week at $457-458/t fob and $455/t fob respectively for January load readiness, each for 30,000-tonne packages. This week, however, billet suppliers are targeting prices of $450-455/t fob, which is not attractive enough to generate transactions. Potential buyers claim only Iranian billet prices of $440/t could induce interest.
Khorasan Steel has received bids for its latest billet export tender, which is expected to be finalised on Saturday.
"Today, ex-Russia billet prices are at $445-450/t fob and ex-China at $450/t fob for February shipment of 150mm 3sp material. Iranian mills should lower their target prices. $450-455/t fob cannot find any buyers in overseas destinations," comments a reputable source.
Source:Kallanish
