Iranian billet export offers registered a steep rise this week on rising global scrap and billet prices. Chadormalu Mining and Industrial Company, one of the leading exporters of Iran, had floated an export tender for 30,000 t billets. The company has concluded the export tender at around $475/t FoB Iran. The shipment is likely to be scheduled for mid-Jan’21 and the material is likely to be shipped to China, sources have reported.
In conversation with a few of the leading Iranian mills, we learned that export tenders are likely to be floated shortly with few bigger mills targeting $480-485/t FoB levels. SteelMint assessed the Iranian billet export price assessment to be at $475-480/t, FoB up by $10-15 against last week.
Reasons behind hike in offers –
- Imported scrap prices in Turkey have increased further this week by $15/t in the recent bookings confirmed by SteelMint. A west Marmara based steel mill has booked European origin bulk cargo, comprising of 15,000t of HMS 1&2 (75:25), and 15,000t of mix scrap (bonus+ Busheling + shredded) at an average price of $385/t CFR Turkey basis.
- In addition to it, Chinese SHFE rebar May’21 futures registered a sharp rise of RMB 75 ($12) today and settled at RMB 3,989/t.
- CIS billet export offers have increased further by $20 compared to the beginning of this week.
Iranian domestic billet prices rise in recent trade at IME: The Iranian domestic billet prices rebounded in a recent trade event hosted at the Iranian Mercantile Exchange (IME). Yesterday, 181,000 t billets were traded, at an average price of IRR 97,091/kg, up by IRR 863/kg against last week.
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