Khouzestan Steel Company (KSC) – one of the leading exporters of Iran had floated an export tender for billet and slabs of quantity 30,000 MT each. According to sources reported to SteelMint, the company has concluded the billet tender, while the slab remained unsold. The deal value for billets (130*130mm) was noted to be USD 360-365/MT, FoB Iran. Although the destination could not be confirmed till the time of publishing this report, if sources are to be believed, it has been booked for China.
With this deal, SteelMint’s billet export assessment for Iran has increased and is currently standing at USD 355-365/MT FoB Iran, up USD 5/MT against the closing of last week.
From the past couple of months, the company is actively booking export cargos. The shipments are largely booked for China and SE Asia.
During the first month of the current Iranian year (20 Mar’20 – 19 Apr’20), with 102,373 MT of steel exports, KSC continues to remain the largest exporter of the country. However, the company witnessed a Y-o-Y decline of 60%.
The way forward also doesn’t look in the favor of steel mills as the government has imposed export restrictions on the mills, i.e. a mill can export only 25% of its production. However, further clarity on products levied is awaited as mills have opposed this move, especially for billets/blooms.
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