The Iranian billets exports market has seen an uptrend in the form of recent billet export deals concluded. Both domestic and export markets have shown some promising trade this week so far.
An Iranian mill has reportedly concluded another package of 30,000 tonnes (t) of steel billets (150mm, 3SP) for exports a few days back, sources informed SteelMint. The shipment is likely to be scheduled for Nov’21. According to market sources, the deal was concluded at a price level of $645/t, FOB Iran.
“No fresh deals have been concluded recently after seeing a drop in Chinese rebar futures today. However, mills are unlikely to lower offers considering the higher production costs,” said an Iranian mill source.
According to data maintained with SteelMint, the Chinese rebar futures contract for Jan’22 delivery closed at RMB 5,304/t (829$/t), a sharp d-o-d decline of RMB 242/t ($38/t) on 20 Oct and also down by RMB 117/t ($18/t), w-o-w.
Semi-finished steel – billet and bloom – exports from the world’s 10th largest steel producer, Iran, have edged up around 17% to 2.33 mn t in the first six months of the current Persian year (Mar 21- Sept 21) against 1.98 mn t recorded in the same period last year. Iran’s crude steel production stood at around 2.5 mn t in Aug’21, as per WSA data.
Improved quality of manufactured products prepared the ground for Iranian companies to make their presence felt in the global markets.
Domestic billet trade on IME up sharply: Domestic billet sales on the Iran Mercantile Exchange (IME) were up by around 45% w-o-w with the 2% hike in the average price. Around 101,000 t of billets were traded in the last one week at an average sales price of 131,298 Rial on IME, as per data maintained with SteelMint.
Last week, around 69,480 t of billets were traded at an average sales price of 129,052 Rial on the IME.
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