Iran, one of the largest billet producer has witnessed rise in domestic billet price last week. The market opened with domestic billet price as IRR 21,590/KG (USD 455/MT), officially on Monday i.e. 12-Feb’18. On consecutive day, the billet prices witnessed a hike and reached IRR 21,950/KG (USD 462/MT). During mid-week, prices were noted to be around IRR 22,260/KG (USD 469/MT) and towards the end of the week, domestic billet price was around IRR 22,100/KG (USD 465/MT).
As per SteelMint assessment, China has put restriction on steel export due to which many countries are forced to look for alternative exporter or to increase their steel production. Because of which demand of scrap and DRI increased and in order to fulfill their demand they in turn imported raw material and semi-finished steel from gulf region. This however motivated DRI and Billet producers to export rather than selling it in domestic market, owing to which it has affected DRI and billet market in Iran.
According to Planner ” DRI cargo was dealt in IME at IRR 10,600/KG(USD 223/MT), which shows a hike of around IRR 700/KG, in parallel lines scrap price has also increased, which let the billet price to hike further. As a matter of fact, South Kaveh Steel has offered a cargo of billet in IME, which was bought at IRR 20,600/KG excluding 9% VAT. This is also one of the factor supporting the IF billet prices”.
Scrap was traded at around IRR 16,520-16,920/KG (USD 348-356/MT). The difference between scrap and billet price was noted to be around IRR 5,000 to 5,600/KG (USD 455-469/MT). On Similar lines, rebar was traded at around IRR 23,570-24,550/KG and the difference between billet and rebar was noted to be around IRR 1,980-2,450/KG (USD 42-52/MT).
Inputs taken from Planner
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