Iran’s Billet Mills Enjoy Export Demand

EghtesadOnline: Iran’s square billet exporters have returned to the market with new tenders after the holiday period and closed a number of deals.

News ID: ۷۷۵۴۶۱

16 April 2017

Higher demand was also seen in the Middle East, as negotiations with other buyers are also proceeding.

Iranian New Year holidays started on March 21 and ended on April 2.

The initial price idea for May shipment billet from Iran was set within $385-390/ton FOB after the holidays, Financial Tribune reported.

A total of 60,000 tons were reportedly sold to Jordan by Khouzestan Steel Company and Esfahan Steel Company after the holidays. However, no details have been disclosed yet.

“These volumes are intended for a range of customers in different regions,” a market participant said.

In addition, KSC has recently sold 35,000 tons to the UAE but the exact price level was not revealed. ESCO booked 20,000 tons in the range of $380-385/ton FOB to the Middle East in the same period. Notably, some inquiries for 50,000 tons were heard from Turkey and a deal was reported at around $390/ton CFR.

Current price idea from both KSC and ESCO is $385/ton FOB, Kish South Kaveh is reportedly aiming to get $380-385/ton FOB under the current tender. Overall, the number of inquiries is considered satisfactory.

“Now we are negotiating not only with the Middle East, but also with Far Eastern buyers,” a producing source told Metal Expert.

“We even have some inquiries from European customers,” he added.

Some buyers, however, are reportedly targeting to book not higher than $370-375/ton FOB.