Iran, one of the largest billet manufacturer in MENA has exported around 1,417,000 MT billet during the 5 months of current Persian year (21 Mar-22 Aug’18). The nation is facing sanctions from United States owing to which the currency of Iran is depreciating abruptly. During the last week 1 USD was traded at around IRR 189,000 in black market against the official rate of IRR 42,000/USD. Falling Rial has increased the prices of billet in domestic market.
As per SteelMint’s assessment, during the beginning of week 39 (22 Sep-27 Sep’18) billet was traded at around IRR 37,390/KG (USD 890/MT). Prices remained almost stable till Monday, but owing to sudden downfall of IRR, billet prices started to increase from Tuesday by reaching IRR 39,560/MT (USD 942/MT). Prices increased further on Wednesday by reaching IRR 40,090/KG (USD 955/MT) and continue to increase till Thursday by reaching IRR 41,540/MT (USD 989/MT).
According to Planner “Last week, due to sharp depreciation of IRR, prices rose sharply. Demand is still good and some compete is seen in IME. Export is facing problems though since CBI has mad exporters to bring their dollars into country within 3 months and since the declaration price at customs is much higher than what producers actually sell. So, exporters are on wait and watch situation to have a more clear decision from CBI.
Major Steel Makers Sold Billet at IME
Esfahan Steel Company sold 11,000 MT billet at IME on 22 Sep’18 at IRR 34,864/KG (USD 830/MT). On the same day South Kaveh Steel Company has also sold 5000 MT billet at IRR 35,000/KG (USD 833/MT) against the demand of 5500 MT.
Khouzastan Steel Company sold 25,000 MT billet at IME on 29 Sep’18 at IRR 35,101/KG (USD 826/MT) against the demand of 34,000 MT from buyers. On the same day Khorasan Steel Company has also sold 10,000 MT billet at IRR 35,156/KG (USD 837/MT) against the demand of 18,000 MT.
Inputs taken from Planner
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