Iranian billet export prices rose marginally this week supported by higher imported scrap prices. Iranian exporters are targeting higher prices for billets despite strong resistance from Asian buyers, said Davis sources. A tender for 30,000mt billet to Southeast Asia by a leading Irani semi-steel producers was heard at $400-405/mt fob Iran for end-September shipment.
An enquiry for 40,000mt of 150×150 square billets grade 4SP cfr Jizan equivalent is heard at $380/mt delivery September or October. The equivalent export prices for Iranian billet Thursday ranged at $400-405/mt fob against last week’s levels of $395/mt fob. A few other billet exporters are negotiating September shipment targeting $405/mt fob Iran, for Asian and African buyers, said a source.
Iranian billet makers are upbeat about the overall sentiments in the global market. Billet prices are also supported by the recent jump in imported scrap prices in Turkey. Turkish steelmakers have resumed trades on Monday at prices higher by $7-8/mt cfr from the prior week.
The daily Davis Index for US-origin HMS 1&2 (80:20) in bulk cargoes concluded at $286.4/mt, up by $2/mt from a day ago, while up by $6.2/mt from $279.8/mt cfr Turkey on Aug 21.
Asian importers are likely to resist this price hike as they are targeting $425-430/mt cfr Southeast Asia. Interest in billet bookings in China remains stable on high raw material prices and strong domestic steel demand. On Thursday, Chinese domestic billet prices dropped marginally by CNY10/mt to CNY3,400/mt ($494/mt) ex-works Tangshan. Around 19 steelmakers have stopped production as instructed by the pollution control department.