Iran, one of the major billet producer in MENA region is currently witnessing volatility in domestic billet offers. Last week, offers went up during the beginning of week and towards the end of last week offers dropped significantly. During second week of Dec’18, domestic billet offers hit All Time Low since Sep’18 owing to appreciation of Rials against USD.
As per SteelMint’s assessment, during the beginning of last week (29 Dec’18- 03 Jan’19), domestic billet offers were noted to be around IRR 28,630/KG (USD 682/MT). Offers remained almost stable on succeeding day. During midweek owing to limited supply of billet in domestic market, offers increased to IRR 29,000/MT (USD 690/MT). Towards the end of week, offers further increased to IRR 29,350/KG (USD 699/MT).
According to Planner, “Domestic market is picking up little. The prices are on the rise due to better demand and limited supply.”
IR Steel quoted, “Last Saturday average price of billet was USD 684/MT ex-work including 9% VAT in Iran domestic market. Low supply made price improve by Monday but by end of the week market was quiet and waiting for a clear trend on coming days. Billet price finished the week at USD 696/MT ex-work including 9% VAT. Market participants expect billet price improve in coming days.”
During last week, scrap offers in Iranian domestic market was noted to be around IRR 23,570- 23,900/KG (USD 561-569/MT). Domestic rebar offers were ranged from IRR 34,070 – 35,170/KG (USD 811-837/MT).
| Commodities | 29/12/2018 | 30/12/2018 | 31/12/2018 | 1/1/2019 | 2/1/2019 | 3/1/2019 |
| Scrap | 23,720 | 23,900 | 23,900 | 23,690 | 23,570 | 23,650 |
| Billet | 28,630 | 28,440 | 29,000 | 28,950 | 29,150 | 29,350 |
| Rebar | 35,170 | 34,070 | 34,200 | 34,750 | 34,720 | 34,110 |
| Difference between Scrap-Billet | 4,910 | 4,540 | 5,100 | 5,260 | 5,580 | 5,700 |
| Difference between Billet-Rebar | 6,540 | 5,630 | 5,200 | 5,800 | 5,570 | 4,760 |
Source: Planner
Unit: IRR/KG
Major Steelmills Offered Billet in IME
Khouzestan Steel Company offered 50,000 MT billet on 07 Jan’19 and sold 23,000 MT 5SP billet in IME at IRR 28,625/KG (USD 681.55/MT) excluding 9% VAT against the demand of 29,000 MT.
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