Thailand has been the main beneficiary of Iranian billet cargoes which were initially destined for the Chinese market before being diverted, Kallanish notes.

Bookings this week have taken place at $760-765/tonne cif Ko Sichang. A Thai trader reports hearing a 30,000-tonne parcel of 150mm 3sp grade of Iranian billet for May shipment booked at $760/t cif. “Discussions took over a week and it [the deal] was signed this week,” a Bangkok trader says. Another trader reports hearing from a customer of an order for 10,000t of 150mm 3sp billet at $765/t cif, which will arrive in Ko Sichang next week.

But traders say this is the highest price level which Thai buyers will accept. The Thai domestic rebar market is facing weak demand and rebar prices are low. “The maximum breakeven level for today’s rebar prices is $760/t cif,” the first trader says. The trader who reports the $765/t cif order adds he has not heard of anyone paying above this level.

A floating Iranian cargo of 150mm 3sp billet, offered in the regional market during the week beginning 21 March and initially bound for China, found buyers last week in Thailand and Indonesia. Of the 42,000t cargo, 21,000t was booked at $750/t cif Ko Sichang and it will arrive at the Thai port either this or next week. The remainder of that cargo was sold at $770/t cfr Indonesia.

The cargo was diverted mainly because Covid-19 lockdowns have disrupted and effectively closed Chinese ports, Thai trading sources say. But a Hong Kong trader believes the cargoes were diverted for profit-making reasons. The billet consignments would have been booked at $60-70/t lower to China, the trader explains. “Now, the trader diverted the cargo to Thailand with extra profit,” he comments.

Prime Iranian billet for June shipment is currently offered at $785-790/t cif Thailand. But there are no takers, Thai traders say.