Export Billet Price Picks Up on New Bookings to Beat Sanctions

Metal Bulletin’s weekly price assessment for Iranian export billet was $505 per ton FOB on June 13, up by $5-10 per ton week-on-week.

Several cargoes of Iran-origin July-rolling billet were reported sold to Egypt and Southeast Asia at $505 per ton FOB.

One large cargo was heard booked for Thailand at around $530 per ton CFR, according to Financial Tribune.

Customers were trying to book as much as they could of Iranian material scheduled for shipment before August, because of the threatened reinstatement of trading sanctions on Iran by the United States. The western country has withdrawn from the international deal on Iran’s nuclear-power program and is expected to renew its sanctions on Iran in August.

Despite this, market participants reported some bookings of August-rolling billet from Iran.

“It looks like traders are taking a long position on Iran for August production,” one trader said.

A large Iranian producer confirmed that it had sold such a cargo at $505 per ton FOB.

Market participants doubted that Asian customers would take the risk of continuing to buy Iranian billet under renewed sanctions, but they also assumed that buyers in the neighboring Persian Gulf Cooperation Council nations would find a way to arrange payments and shipments, and to continue the billet trade with Iran.

Metal Bulletin’s weekly price assessment for Iranian export slab was $505 per ton FOB on June 13, down by $5 per ton on the upper end of the range.

Market participants reported recent sales of July-rolling slab at $505 per ton FOB.

Offers of August-rolling slab were heard at the same prices, but no bookings have been reported so far.