This week, The Iranian billet export market remained silent after booking sizeable volumes last week. However, few tenders are floating, and few are likely to be floated in the coming Iranian week (Saturday-Thursday). The mills are targeting higher price levels in the upcoming tenders, on continuous rising global scrap prices and Chinese rebar futures.
The imported scrap prices in Turkey have increased by around $10/t in recent deals. SteelMint’s assessment for HMS (80:20) imported scrap prices in Turkey is currently at $343/t, CFR. On the other hand, the SHFE Chinese rebar futures Jan’21 contract yesterday settled at RMB 3,865/t ($588/t).
“We haven’t floated any fresh billet export tender. However, price expectations from other Iranian mills have now increased to $445-450/t FoB levels after deals getting concluded at $440 FoB levels last week”, highlighted a participant from an Iranian steel mill.
Chadormalu’s 30,000 t billet export tender- Chadormalu Mining and Industrial Company, one of the leading exporters of Iran, has floated an export tender for 30,000 t billets. The shipment is likely to be scheduled for Jan’21.
For this week, SteelMint assessed Iranian billet export prices to be at $435-445/t, up by $5 against last week.
The increased export offers from Iran have also raised the bid-offer disparity for the Iranian billets amind down-trending Chinese domestic billet prices. In the past two days, the domestic billet prices in China dipped by RMB 50 ($7.6), and today reported at RMB 3,570/t ($543/t), ex-Tangshan inclusive of 13 % VAT. The offers from the country for a SE Asian or Chinese destination were heard at $475-480/t, CFR, while bids were at $460-465/t, CFR.
Domestic billet prices witness a drop of IRR 4,110/kg ($21/t): Amid sluggish finished steel demand, the domestic billet prices in Iran at the Iranian Mercantile Exchange (IME) dropped further, by IRR 4,110/kg ($21/t) in a recently hosted trade event. According to SteelMint sources, on Tuesday, approximately, 23,000 t billets traded at IME at an average price of IRR 89,285/kg ($348/t)
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