Export Billet, Slab Prices Drop on Market Instability

Prices for Iranian steel billet and slab exports decreased in the week that ended on May 2, with customers targeting lower prices because of unstable conditions in the global billet market.
Metal Bulletin’s weekly price assessment for Iranian billet exports was $480-500 per ton FOB on May 2, against $495-505 per ton FOB a week earlier.
Recent bookings of Iranian billet were reported for around $500 per ton FOB to customers from the (Persian) Gulf Cooperation Council countries and Africa.
Offers from Iranian mills remained largely unchanged over the week, varying within the range of $500-505 per ton FOB, but bids from potential customers did not exceed $480 per ton FOB.
“Billet prices are very unstable. We do not see any reason to buy billets at any price above $495 per ton CFR,” a customer in the UAE told Metal Bulletin.
The reaction of Iranian mills will become clearer later this week because on Wednesday, the market was celebrating a religious holiday.
In the slab market, Metal Bulletin’s weekly price assessment for Iranian exports was $520-535 per ton FOB on May 2, against $495-505 per ton FOB a week earlier.
Recent slab offers from Iranian mills were reported by market participants at $535-540 per ton FOB.
A 40,000-ton cargo was reported booked by customers in Thailand at $550 per ton CFR, equivalent to $520-525 per ton FOB, considering a freight cost of $25 per ton and $5 per ton operational costs.