Iran: Transport Strike Pushes Domestic Billet Offers

Iran, one of the largest billet producer and exporter in world witnessed an increase in domestic billet price. Last week domestic price impacted due to ongoing truck strikes over low wages in Iran.

By considering the exchange rate of 1 USD as IRR 42,000, Market opened on 26th May’18, Iranian domestic billet was noted to be around IRR 24,880/KG (USD 592/MT). For the next three days no price was declared because of ongoing strike of truckers. Market resumed on 30th May’18 with billet prices hovering at around IRR 25,330/KG (USD 603/MT). Prices continued to increase on consecutive day as prices on 31st May’18 was noted to be around IRR 25,550/KG (USD 608/MT).

On the first day of Week 23 i.e. on 02nd Jun’18 billet price reached IRR 25,650/KG(USD 611/MT) and on 03rd Jun’18 prices were noted to be around IRR 25,780/KG (USD 614/MT).

As per Planner “The truck strike affected the billet market in Iran, this week again from Monday till Saturday Iranian market will be closed owing to national holidays.”

As per IRSteel “From Sunday till Tuesday due to strike of truck drivers which continued from previous week, there was no deal in the market. By Wednesday transportation from some cities started mostly for 6 meter length billet. Then some cargoes from Neishabour and northern part of the country were transported by trucks. Actually trucks are not transporting cargoes from important cities for steel market such as Ahwaz and Isfahan which will continue this week due to holidays. Until trucks working became normal, market would be cautious and waiting for possible declines.”

During the period scrap prices inched up, was hovering at around IRR 18,390/KG (USD 438/MT) to IRR 18,900/KG (USD 450/MT). Rebar Prices was noted to be around IRR 28,220/KG (USD 672/MT) to IRR 28,980 (USD 690/MT).

Inputs taken from Planner and Irsteel

Unit – IRR/KG
Source: Planner