Iran, one of the largest billet producer in MENA region has produced 7,968,000 MT billet during the first 7 months of current Persian year (21 Mar-22 Oct) by registering a growth of 22% Y-o-Y. The nation is currently facing economic sanctions from US, owing to which export of billet has affected significantly. Sanctions has also impacted domestic market also, as due to sanctions demand of finished long product has reduced notably.
According to SteelMint’s assessment, domestic bullet offer during week 47 (17 Nov – 22 Nov’18) had an upward trend. During the beginning of last week, domestic billet offers was noted to be around IRR 36,800/KG (USD 876/MT). During mid-week, KSC offered its billet at IME at USD 830/MT excluding 9% VAT which affected free market owing to which offers in free market went up to IRR 37,140/KG (USD 884/MT). Towards end of last week billet offers were noted to be around IRR 37,070 – 37,090/KG (USD 883/MT).
Domestic scrap offers were traded at around IRR 32,110 – 32,450/KG (USD 765 – 773/MT). On other hand, Rebar in Iranian domestic market was traded at around IRR 42,390 – 42,810/KG (USD 1,009 – 1,013/MT).
As per Planner, “Domestic billet offers are stable in line with low trend of USD, also the finished long market is also low. Out of 70,000 MT of ESCO rebar, only 18,000 MT was sold.”
IR Steel quoted, “Market was expecting this as supply of the mill and it’s pricing made market downward trend stopped. If billet price stays at current level, debar price won’t decline. Market insiders believe that billet export level will make clear market trend more.
If export level declines, billet market should choose either higher supply or decline of prices or lower production and keeping prices unchanged. Big mills prefer keeping prices stable, therefore would try increase export level, and otherwise would have to decline production level.”
| Commodities | 17/11/2018 | 18/11/2018 | 19/11/2018 | 20/11/2018 | 21/11/2018 | 22/11/2018 |
| Scrap | 32,450 | 32,330 | 32,370 | 32,110 | 33,070 | 32,320 |
| Billet | 36,800 | 36,810 | 36,830 | 37,140 | 37,090 | 37,070 |
| Rebar | 42,810 | 42,710 | 42,780 | 42,690 | 42,560 | 42,390 |
| Difference between Scrap-Billet | 4,350 | 4,480 | 4,460 | 5,030 | 4,020 | 4,750 |
| Difference between Billet-Rebar | 6,010 | 5,900 | 5,950 | 5,550 | 5,470 | 5,320 |
Units: IRR/KG
1 USD = IRR 42,000
Source: Planner
Iranian Steel Mills Offer Billet at IME
Khorasan Steel Company offered and sold 10,000 MT 5SP billet on 19 Nov’18 in IME at IRR 34,282/KG (USD 816/MT) excluding 9% VAT against the demand of 50,000 MT.
Khouzestan Steel Company offered and sold 40,000 MT 5SP billet on 20 Nov’18 in IME at IRR 34,852/KG (USD 830/MT) excluding 9% VAT against the demand of 82,000 MT.
South Kaveh Steel offered and sold 4,000 MT 3SP billet on 21 Nov’18 in IME at IRR 28,430/KG (USD 677/MT) excluding 9% VAT against the demand of 5,000 MT.
South Kaveh Steel offered and sold 6,000 MT 5SP billet on 21 Nov’18 in IME at IRR 33,261/KG (USD 792/MT) excluding 9% VAT against the demand of 15,000 MT.
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