Iranian Domestic Billet Offers Hit All Time Low

Iranian Domestic Billet Offers Hit All Time Low since Sep’19 owing to appreciation of Rials against USD.

Iranian Rials witnessed a sharp appreciation last week against US dollar, owing to which the domestic billet offers fell almost by USD 50. During the beginning of Nov’18, 1 USD was traded at IRR 144,500 but during last week, the value of 1 USD has fallen to IRR 116,000.

As per SteelMint’s assessment, domestic billet offers during the beginning of week 48 (24-29 Nov’18) was noted to be around IRR 37,090/KG (USD 883/MT). During the mid-week, billet offers were noted to be around IRR 36,130/KG (USD 860/MT), offers went down almost USD 10. Towards the end of week 48, billet domestic offers were noted to be around IRR 35,090/KG (USD 835/MT).

According to Planner, “The demand in domestic market is not so good at the market, plus USD exchange rate has depreciated sharply which has affected the domestic billet offers.”

IR Steel quoted, “Main reason behind downward trend of billet in Iran was the decline of ex-rate in free market to lower that Rials 110,000 /1 USD. This trend affected long products demand negatively too. Lower long products prices will decline billet demand too. In retail market competition between producers was strong and this made downward trend stronger which is expected to continue in coming days.”

Units: IRR/KG
Source: Planner

During week 48, scrap offers in Iranian domestic market was noted to be around IRR 31,530-32,190/KG (USD 751-766/MT). Domestic rebar offers were ranged from IRR 40,880-42,300/KG (USD 973-1007/MT).

Major Steelmills Offered Billet in IME

Khorasan Steel Company offered and sold 10,000 MT 5SP billet on 27 Nov’18 in IME at IRR 33,034/KG (USD 787/MT) excluding 9% VAT against the demand of 35,000 MT.

Khouzestan Steel Company offered and sold 30,000 MT 5SP billet on 28 Nov’18 in IME at IRR 32,393/KG (USD 771/MT) excluding 9% VAT against the demand of 50,000 MT.