Iranian billet export market broadly remained silent on bearish global sentiments.
The recent fall in the Chinese steel futures market and rising vessel freight rates were a setback, owing to which few Iranian mills have softened the price expectations. The falling global scrap and Chinese domestic billet prices have added fuel to fire.
For instance, today the billet prices in the Tangshan market (North-East China) witnessed a further fall of RMB 60 ($9) and are currently at RMB 4,290/t ($661/t) in Tangshan, including 13 % VAT.
A couple of leading Iranian mills floated export tenders for 60,000 t billets (30,000 t each). The shipments are likely to be scheduled for Apr ’21.
KSC floats 60,000 t billet & slab export tender: Khouzestan Steel Company (KSC), Iran’s leading steel exporter, has floated an export tender for 30,000 t billets (150*150mm) and 30,000t slab. The shipment is likely to be scheduled for Apr ’21. The company is expecting a price level of $550/t, FoB for billets. In the previously concluded tender, the company managed to achieve a price level of $555-560/t, FoB.
KSC exported around 1.25 mn t semi-finished steel (billet, slab, and blooms) during the first ten months of the current fiscal year (21 Mar ’20-19 Jan’21). Thus, it continues to remain the largest semi-finished steel exporter of the country.
Chadormalu floats 30,000 t billet export tender: Chadormalu Mining and Industrial Company, another among the country’s leading steel exporters, reported having floated an export tender for 30,000 t billets, Apr ’21 shipments. In the previously concluded tender, the company managed to achieve a price level of $543/t, FoB.
During conversations with SteelMint, a trader mentioned- ” Iranian mills are likely to have more allocation for billet exports after 21 Mar ’21 (after their new year) and before Ramadan (in Apr ’21).”
SteelMint’s bi-weekly assessment for Iranian billets is at $550-555/t, FoB Iran, down by $5 against last week
Iranian domestic billet prices continue rising: The domestic billet prices at the Iranian Mercantile Exchange (IME) witnessed a rise for the second consecutive week. This week, the average traded billet price was reported to have increased by IRR 1,509/kg ($6) to reach IRR 106,088/kg ($429/t). The offered quantity was 136,800 t, against which 91,260 t were traded.
Iran’s apparent steel consumption rises by 20% y-o-y during the first ten months: Iran’s apparent steel usage for finished products during the first ten months of the current Iranian year stood at 15.32 mn t to register a y-o-y rise of 20%, according to the Iranian Steel Producers Association’s (ISPA) latest report. Flat steel products accounted for the major portion of finished steel consumption with 7.43 mn t, up 13% y-o-y.
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