Iranian billet increased slightly in the week to Wednesday October 14, with traders accepting higher prices in the latest round of bookings.
Last week, most Iranian producers finally returned to the market, placing fresh tenders for cargoes to be shipped in October and December. Mills were waiting for China to return from a week-long national holiday to see the market trend.
***rebar
Domestic prices for steel rebar surged in China on October 9 amid active restocking activity, and Iranian mills managed to win deals at higher prices during the weekend.
One cargo of 30,000 tonnes scheduled for shipment in November was sold to a trader at $412 per tonne fob southern Iranian ports.
There were two more cargoes from different mills heard sold at $410-413 per tonne fob, but their tonnages could not be verified at the time of publication.
Another Iranian producer claimed to have sold two cargoes totaling 60,000 tonnes, each at $415 per tonne fob, but some sources heard that the mill traded only one 30,000-tonne cargo scheduled for shipment in November, sold at $409 per tonne fob.
A fifth mill sold 30,000 tonnes of billet for shipment in December at $407 per tonne fob, according to one source.
*** Iranian billet
Fastmarkets’ weekly price assessment for Iranian billet , export, was $407-413 per tonne fob on Wednesday, up from $405-410 per tonne.
On Wednesday, buying activity in the Chinese rebar market faded due to the weakening of the stock market and high inventories at the mills.
***Domestic rebar
Fastmarkets’ daily assessment of the price for steel reinforcing bar (rebar), domestic, ex-whs Eastern China, was 3,700-3,730 yuan ($549-553) per tonne on October 14, down by 10 yuan per tonne from Tuesday.
Given these conditions, bids for imported billet were still low in China and in the wider Asian region.
Several traders reported receiving bids for Iranian billet from customers in China at $440 per tonne cfr. This would net back to around $410 per tonne fob southern Iranan ports. Excluding the trader’s margin and extra costs for money transfer, this would be equivalent to $400-405 per tonne fob.
Bids from customers in Thailand were heard within the range of $435-440 per tonne cfr, or $405-410 per tonne fob, which excluding the margin and extra costs would be as low as $395-400 per tonne fob.
“[The market in] Indonesia is sleeping and they do not see a chance to wake up until next year. As an exception, they may buy some wire rod-grade billet and slab,” one trader said. “I believe all the material booked recently by traders will go to Jordan, Egypt and Sudan.”
Iranian billet has been in demand in the Middle East-North Africa market in recent weeks.
One cargo of 20,000-30,000 tonnes was recently sold in Qatar for around $445 per tonne delivered. The cost of freight in the Persian Gulf is $15-16 per tonne, according to market participants, which would make Iranian billet attractive for companies trading in the area.
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