Iran, one of the largest billet manufacture in MENA region has recently witnessed currency depreciation. As per source the exchange rate of IRR reached up till the level of 61,000 against USD, owing to which Iranian government a crucial step of capping IRR at IRR 42,000.
On 4th April’18, Post Persian new year holidays, billet was reported to be traded at around IRR 23,310/KG (USD 455/MT). On 5th April’18, billet price inched down to IRR 23,290/KG (USD 454/MT). On 7th April’18, billet price however increased to the level of IRR 23,430/KG but owing to depreciation of IRR against USD the price decreased to USD 444/MT. Billet price on 9th April’18 reached around IRR 25,160/KG (USD 412 with exchange rate as 1 USD-IRR 61,000). On 11 April’18 billet was traded at around IRR 23,760/KG (USD 390/MT with exchange rate as 1 USD-IRR 61,000).
As per Planner “The market is really under the exchange rate that dropped from IRR 61,000 to IRR 42,000 over a night, so sellers are reducing their prices sharply. The market has gone in a silent phase and no one in the market is offering their materials.”
Iranian Domestic Billet Prices as on Week 15’2018
| Commodities | 4/4/2018 | 5/4/2018 | 7/4/2018 | 8/4/2018 | 9/4/2018 | 11/4/2018 |
| Scrap | 17,040 | 17,090 | 17,220 | 17,440 | 17,750 | 17,630 |
| Billet | 23,310 | 23,290 | 23,430 | 24,450 | 25,160 | 23,760 |
| Rebar | 25,750 | 25,790 | 25,900 | 26,530 | 27,630 | 27,560 |
| Difference between Scrap-Billet | 6,270 | 6,200 | 6,210 | 7,010 | 7,410 | 6,130 |
| Difference between Billet-Rebar | 2,440 | 2,500 | 2,470 | 2,080 | 2,470 | 3,800 |
Prices in IRR/KG
1 USD = IRR 55,000 (In Free Market)
Inputs taken from Planner
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