Iranian Mills Eye for Higher Billet Export Offers Post Scrap Price Hike

Iran billet export offers were reported stable this week. The global scrap prices have registered a tapered climb, as a result of which the Iran billet export offers remained supported and did not witness any negative correction.

After reports of tightening supply of scrap at global yards due to slow inflow and low collection since last week, it was being widely anticipated that scrap prices will rebound soon. In line with the expectations, imported scrap prices to Turkey have shot up by over USD 25/MT CFR in a couple of deep-sea cargo bookings confirmed in recent, while offers have witnessed a considerable upturn.

The event has also lifted and constructed the expectations of the mills, which were ready to sell at between USD 315-320/MT, FoB Iran levels, till last week. In the current scenario, the mills are not willing to sell below USD 330/MT, FoB levels, SteelMint learned from market participants. In fact, one of Iranian billet export majors are eyeing for levels of USD 350/MT, FoB Iran for GCC countries.

SteelMint's assessment for Iran billet export offers is at USD 330-335/MT, FoB Iran, up marginally against last week. While our assessment for HMS 1&2(80:20) from the USA stands at USD 248/MT CFR Turkey, up by USD 25/MT against last week.