Iran, one of the largest billet manufacture in MENA region has witnessed stability till last Tuesday, but by Wednesday as Khouzestan Steel co offered billet at IME, its pricing made market confused. Khouzestan Steel co billet was offered at base price of USD 524 /MT was finalized at USD 576 /MT ex-work including VAT, but it was a deal with 90 days payment which means 4.5% bank interest rate should be added to it.
By considering the exchange rate of 1 USD as IRR 42,000, On 7th May’18, Iranian domestic billet price last week during week 19 was noted to be around IRR 24,630/KG (USD 586/MT). On the next day prices inched down to around IRR 24,540/KG (USD 584/MT). Billet prices went up to IRR 25,450/KG (USD 606/MT) on weekend i.e. on 09-May’18.
Beginning of Week 20 in Saturday billet prices went down to around IRR 24,600/KG (USD 586/MT), on 14th May’18 billet prices further went down to around IRR 24,270/KG (USD 578/MT). Billet prices during 15th May’18 was noted to be around IRR 24,320/KG (USD 579/MT).
During the period scrap prices inched up, was hovering at around IRR 17,870/KG (USD 425/MT) to IRR 18,330/KG (USD 436/MT). Rebar Prices was noted to be around IRR 27,810/KG (USD 662/MT) to IRR 28,800 (USD 686/MT).
As per Planner “The prices are under depreciation of IRR and recent bank rule for the dollar. Yesterday ESCO products were offered on IME and were sold almost IRR 480/KG more than the base price. Still, it is predicted that market will face stagnation in coming months due to export as IRR will be restricted to IRR 42,000 for 1 USD.”
| Commodities | 7/5/2018 | 8/5/2018 | 9/5/2018 | 12/4/2018 | 14/5/2018 | 15/5/2018 |
| Scrap | 17,870 | 18,020 | 18,050 | 18,240 | 18,330 | 18,320 |
| Billet | 24,630 | 24,540 | 25,450 | 24,600 | 24,270 | 24,320 |
| Rebar | 28,130 | 27,960 | 28,800 | 28,380 | 27,870 | 27,810 |
| Difference between Scrap-Billet | 6,760 | 6,520 | 7,400 | 6,360 | 5,940 | 6,000 |
| Difference between Billet-Rebar | 3,500 | 3,420 | 3,350 | 3,780 | 3,600 | 3,490 |
Unit – IRR/KG
Source: Planner
Iran’s ESCO Concludes 30,000 MT Billet Export Tender
Esfahan Steel Company, one of the largest Iranian steel maker has recently invited bid for export of 30,000 MT end of July delivery. As per company sources the company has concluded the deal for USD 500-505/MT and will be shipped to MENA region.
Last week billet export offers were hovering at around USD 490-495/MT. Last month ESCO managed to sell billet at around USD 495-500/MT.
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