Iran's seaborne iron ore exports remained virtually halted on 3 June, as the renewed dual blockade of the Strait of Hormuz (SOH) stalled loadings from southern ports, with index-linked prices holding in a narrow range and higher freight, lack of insurance and elevated risk undermining export economics.
Market participants urged the government to remove export duties on pellets and concentrate to improve netbacks, while truck deliveries to neighbouring markets increased.
Supply of pellets rose, with several cargoes offered at fixed prices of $98-105/t fob Bandar Abbas, but buying interest was capped at around $95/t fob because of prolonged waiting times for vessels.
The 65pc Fe pellet premium rose to $19.20/t from $17.85/t, while the 63pc Fe pellet premium edged down by $0.05/t to $11.15/t.
These moves implied pellet prices of roughly $122.5-129.5/t cfr Oman, equivalent to about $92.5-95/t fob Iranian ports.
Some traders tested alternative export outlets in Turkey, India and Oman. A 70,000t pellet cargo was sold at IR132,000/kg (around $89.1/t) ex Sirjan, while a producer in Sangan offered 50,000t at IR154,240/kg (about $104/t), but no deals were concluded for June loading via the Iran Mercantile Exchange.
Several pellet cargoes were discussed at $95-97/t fob on a fixed price basis during the week.
DRI/HBI
Direct reduced iron (DRI) export offers were heard at $235-240/t fob/fca, while hot briquetted iron (HBI) stood at $250/t fob. At least 10,000t of DRI changed hands at $235/t fob or FCA border points to neighbouring countries, and at least one vessel was reported waiting at anchorage to load cargoes bound for Oman.
Truck based exports to CIS countries continued in small volumes.
Concentrate availability was ample, with offers at $82-86/t fob - down by $2–3/t on the week amid softer domestic demand - but high freight, limited vessel availability and elevated SOH transit risks prevented fresh seaborne deals. At least two 70,000t concentrate cargoes were negotiated at about $102/t fob, but shippers were unable to execute loadings under the current US led blockade, leaving China as the only major outlet for Iranian concentrate.
A Sangan based producer offered 32,000t of concentrate at IR105,500/kg (around $70.70/t) ex works, but no sales were reported.
Freight rates remained firm over the past week, with escalating tensions in the Persian Gulf halting most shipments and several vessels idling at anchorage amid ongoing delays and heightened SOH related risk. Panamax freight was indicated at $36–38/t, Supramax at $37–39/t and Handymax at $39–43/t, depending on laycan and port conditions.
