Iran, one of the largest billet manufacturer in MENA has produced 5,635,000 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. However during the last week, IRR appreciated against USD.
As per SteelMint’s assessment, during the beginning of week 40 (29 Sep-04 Oct’18) billet was traded at around IRR 41,410/KG (USD 986/MT). Prices started to decrease from Monday at IRR 40,780/KG (USD 971/MT) and reached IRR 40,090/KG (USD 955/MT) on Wednesday. Towards the end of week prices increased and were noted to be around IRR 40,840/KG (USD 972/MT).
According to Planner “the market is mostly following the dollar trend, the dollar fell sharply last week so as the steel products”.
IFNAA quoted “Lower ex-rate will affect Iran steel export market more as it has been downward by around 59% during first 5 months of current Iranian year (21 March-22 August)”.
| Commodities | 29/9/2018 | 30/9/2018 | 1/10/2018 | 2/10/2018 | 3/10/2018 | 4/10/2018 |
| Scrap | 30,820 | 31,170 | 31,380 | 31,000 | 30,530 | 30,010 |
| Billet | 41,410 | 40,780 | 40,330 | 40,090 | 40,840 | 40,840 |
| Rebar | 47,800 | 47,890 | 47,240 | 47,780 | 47,180 | 46,680 |
| Difference between Scrap-Billet | 10,590 | 9,610 | 8,950 | 9,090 | 10,310 | 10,830 |
| Difference between Billet-Rebar | 6,390 | 7,110 | 6,910 | 7,690 | 6,340 | 5,840 |
Unit – IRR/KG
Source: Planner
Major Steel Makers Sold Billet at IME
South Kaveh Steel Company sold 5,000 MT billet against the demand of 7,000 MT at IME on 29 Sep’18 at IRR 35,015/KG (USD 833/MT) against the demand of 7,000 MT from buyers.
Khouzastan Steel Company offered 25,000 MT billet but sold 15,000 MT at IME on 06 Oct’18 at IRR 35,034/KG (USD 834/MT) due to the low demand of 15,000 MT from buyers.
On the same day Khorasan Steel Company also offered 20,000 MT billet but managed to sell only 5K due to weak demand at IRR 35,034/KG (USD 834/MT). Arfa Steel Company sold 4,000 MT billet at IME on 06 Sep’18 at IRR 35,034/KG (USD 834/MT).
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