Iran billet export prices went up in the current week owing to high scrap prices and non availability of spot billet cargoes. As per sources, Khouzestan Steel Company (KSC) – Iran’s largest steel exporter has concluded an export deal this week at around USD 500/MT FOB to Gulf country. The quantity for trade was around 40,000 MT. The main reason for increase in billet price is believed to be increase in Scrap price. Also, due to shortage of billet in gulf region.
KSC concluded billet export tender of 30,000 MT last week for February 2018 shipment at USD 475/MT FOB. As per market source the shipment will go to Gulf country.
The steel billet offered is of size 130*130 mm/or 150*150 mm and of grade 3 SP, 5 SP (St-44, ASTM A36, SS400, ASTM A615 Gr.40, ASTM A615 Gr.60 as per KSC ability)
Also, Esfahan steel company (ESCO), one of the largest exporter of Steel in Iran had invited tender for export of 20,000 MT billet for February 2018 shipment with 25% prepayment. As per market source, ESCO has received few bids for around USD 490/MT FOB with 50% prepayment, but still the deal is not concluded till the time of publishing of this article.
Why billet export are offers increasing?
Billet export offers have increased in line with hike in global scrap prices. Limited availability in winters and active restocking by Turkey steel mills have resulted in sharp hike in scrap offers. Imported scrap prices in Turkey have climbed by USD 20/MT W-o-W and assessment for US origin HMS (80:20) now stands at USD 350/MT, CFR Turkey.
Also lesser billet availability is another reason that has resulted global billet offers to remain on the higher side.
Global billet export offers
1. Billet export offers from CIS nations have increased this week to USD 490-495/MT, FoB Black Sea which were hovering at USD 480-485/MT, FoB last week.
2. Indian billet export offers are heard around USD 490/MT, FoB.
3. Domestic billet prices in China stood at RMB 3,930/MT (ex-works), including 17% VAT.
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