IRON and STEEL
Iranian billet export prices dropped $5-10 per ton over the week that ended Jan. 31, with deals reported at prices lower than the preceding week amid the global downtrend in the long steel market.
Metal Bulletin’s weekly price assessment for Iranian billet export was $489-505 per ton FOB on Jan. 31, against $508-510 per ton FOB a week earlier.
Several bookings were heard done at $496-505 per ton FOB late last week with customers in the (Persian) Gulf Cooperation Council, Jordan, Egypt and Southeast Asia.
Bids decreased to $480-490 per ton FOB this week, while mills’ prices slid to $490-500 per ton FOB, depending on the producer.
An Iranian producer offering at the higher end of the range said the $500 per ton FOB price was high for the current market situation, but also mentioned tight material availability at the mill.
Concurrently, a cargo of Iranian billet was said to be sold to Oman at $505-508 per ton CFR, equivalent to $489-491 per ton FOB Iranian ports. This information could not be widely confirmed by the time of this publication, however.
Market participants expect the downtrend to continue until the second quarter of 2018 due to sliding scrap and raw material prices.
Metal Bulletin’s daily index for US-origin scrap import into Turkey closed Jan. 31 at $350.57 per ton CFR, down against $457.68 per ton CFR on Jan. 24.
The daily index of spot market iron ore prices delivered to China, normalized to Qingdao and 62% FE US was $72.92 per ton CFR on Jan. 31, a decrease from $74.53 per ton CFR on Jan. 24.
The Iranian export slab price assessment remained unchanged over the week at $510 per ton FOB on Jan. 31.
Offers from Iranian mills for slabs produced in March remained unchanged at $510 per ton FOB with no new deals reported concluded.
A 30,000-ton position cargo from Hormozgan Steel was heard sold by a trader to Bangkok at $525 per ton CFR, or $495 per ton FOB Iranian ports. This figure was not included in the assessment, however, due to differing delivery terms.