Iran’s leading semis exporter – Khouzestan Steel Company (KSC) – managed to sell sufficient quantities of billet and slabs since early February. The largest support for billet sales was coming from the Persian Gulf customers, while slabs were mostly marketed in the Far East.
KSC signed contracts for up to 80,000 t of billet for March-April shipments a week ago at around $495/t FOB, mainly supported by demand in Middle East. “Only some volumes were sold to the Far East, while most of the tonnage was marketed to the GCC,” the company’s source told Metal Expert. Somewhat limited allocation for March shipments from the CIS and other Iranian mills benefitted KSC as well. In such situation, taking into account that CIS billet sellers voice higher levels, KSC targets to sell billet for April shipments at $505/t FOB in the near future. Notably, CIS offers are currently standing at the same level with some sales taking place in the Mediterranean region.
Slab exports of KSC were largely supported by sizeable requirement in the Far East as well as strong flat steel products market. Moreover, slabs from alternative suppliers were higher priced, while the availability was limited. As a result, at the beginning of February KSC marketed some 100,000 t to Taiwan and Thailand at $505/t FOB. “We almost sold out material for April shipment. We can sell some remaining volumes at the same level [$505/t FOB] or even at $510/t FOB,” the source told Metal Expert.
