The situation in the Iranian market for billet remains tense. Demand for longs is still rather weak, but both re-rollers and stockists are forced to replenish their empty stocks. Nevertheless, local buyers are extremely careful in view of unstable rial and plummeting prices for semis from the CIS at the Black Sea ports and Turkey due to significant currency devaluation in the alternative markets.
Only 9,000 t of Kazakh billet from Aktau foundry and 20,000 t of Russian material from OEMK (October production) are available for Iranian traders in end-September, prices being $705-710/t C&F Anzali and $715/t C&F Anzali respectively. At the same time, material of the former is still the most attractive, although its quotations have added $25-30/t over the week. All prices are given with immediate payment. The remainder of Casting's October semis (10,000 t) was booked at $705/t C&F Anzali at the end of last week, so the supplier is currently thinking over new prices. Volga-FEST and REMZ are reported to start offering their square billet probably in the second half of October.
At the same time, traders have dropped their domestic prices by $5-10/t over the week, to $730-745/t C&F Anzali Iranian L/C payment, and deals were signed at the bottom end of the price range. Besides, 30,000 t of Ural Steel's material has been reportedly booked at $745/t C&F Anzali on the similar payment terms.
South Korean square billet is available in the south of the country at $705-710/t C&F Imam-Khomeini, Iranian L/C payment ($5-10/t down w-o-w). The CIS and Turkish semis are available at approximately $695-700/t C&F Imam-Khomeini and $715-725/t C&F Imam-Khomeini, respectively, immediate payment.
In the north of the country, stockists have lifted semis quotations by $4/t (IRR 48/kg) in a week, to $773/t (IRR 8,317/kg) FOT Anzali, which is by up to $14/t above the resellers' prices.
Local billet producer Khouzestan Steel has raised offers by $6-10/t (IRR 50-100/kg) over the same period amid somewhat firmer demand for its material.
( Source: www.metalexpert-group.com )