Iranian billet export market was reported silent this week. However, export offers from the country witnessed a marginal rise against last week. According to sources reported to SteelMint, most of the Iranian mills are either booked or are having limited export allocation till Sep’20.
“It has been around 2 weeks that we are not offering in the export market as we are already booked for Sep’20 shipments. We may resume offers next week if the uptrend continues in the export market. Domestic billet prices have increased sharply in recent trades at IME”, shared a market participant from KSC.
The mills have liability to supply in the domestic market, over and above, they are getting better realizations in the domestic market than exports. This is one of the reasons for the rise in domestic billet offers from the country.
SteeMint assessment for billet export offers from Iran has risen and is at $375-380/t FoB Iran, up by $3-5 against last week.
Domestic billet price witnesses a sharp hike- This week around 109,500 t billets were traded at Iranian Mercantile Exchange (IME) at an average price of IRR 80,900/kg ($365/t), up IRR 16,022/kg against 1 Jul’20. The base price reported was IRR 59,923/kg ($270/t). Since, last week, no billets were traded, the domestic demand-supply gap got widened resulting in the sharp price hike.
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