Internal regulations and diverging offers weigh on Iran’s semis export activity
The Iranian semis export segment remains in uncertainty as price discrepancies are wide, while internal regulations continue adding pressure. While some mills continue to target higher levels, the deals are expected at noticeably lower prices, reflecting limited buying interest. On top of that, export activity is being constrained by new regulatory measures that have disrupted shipment flows, prompting market participants to monitor traders and regional demand to define the direction of near-term pricing.
Semis export offers continue to vary in a wide range in Iran, depending on the mill. While target levels remain close to $415/t FOB from some key suppliers, contractors are mainly possible at around $400–405/t FOB, market sources say. The volumes that can be sold through domestic channels with trading licences are available at $390/t FOB. Some offers were coming at $390/t FCA Iraqi border, Metal Expert learnt.
Esfahan Steel Company (ESCO) is about to close its tender for 30,000 t by November 21. The lot is expected to be shipped in early January. Arfa Iron and Steel Company aims to sell 30,000 t under its tender for end-December shipment by November 25. Khuzestan Steel Company (KSC) sold a couple of sizable lots last week at $417/t FOB, according to the supplier. However, the latter level is considered quite high in the current market conditions.
The latest offers to Indonesia were coming at $440–445/t CFR. Last week, the information about a sizable contract to Thailand at $435/t CFR was also circulating in the segment.
Iranian export trade is muted this week by some internal challenges. “Since a few days ago, the government has stopped people from using one-time export licenses, so everything is on hold. People who tried to export any commodities, including concentrate, pellets, metallised products, semis and downstream products, cannot use these licenses,” Keyvan Jafari Tehrani explained to Metal Expert. As a result, several shipments have already been blocked due to the new restriction, according to market sources. Only verified commercial cards can be used for export now.
Metal Expert kept its weekly price assessment for Iranian export billet stable at $405/t FOB on November 19.
Source: metalexpert