Iranian billets export prices have witnessed a decline following a recent deal concluded late last week. Lower bids and limited trade have pulled down billet export prices to eight-month low, SteelMint notes.
An Iranian mill has concluded an export deal for 30,000 t of steel billets, sources informed SteelMint. The deal was concluded at around $550/tonne (t) FOB for mid-Feb’22 shipments. Iran’s billet export prices have fallen by around $15/t compared to the last-concluded tender in end-Nov’21.
SteelMint’s latest assessment of Iranian billets exports (3 SP) decreased marginally by around $2/t to $548/t FOB on 21 Dec’21.
Domestic billet, rebar prices fall
Steel billet prices in Iran’s domestic market witnessed a fall of 1,500 Rial/Kg, w-o-w. Domestic billet prices stood at 138,000 Rial/Kg exw-Esfahan, inclusive of 9% VAT, on 21 Dec’21.
Also, domestic rebar prices recorded a sharp fall of 5,000 Rial/Kg w-o-w to 154,000 Rial/Kg on 21 Dec’21.
Billets and rebar prices fell from mid-last week due to lower prices at the Iran Mercantile Exchange (IME) and lack of demand.
Meanwhile, the country’s apparent steel consumption in the first eight months registered a significant decline. The consumption of billets and blooms fell by 22% y-o-y while that of flats and longs fell by 10% and 12%, y-o-y respectively.
Domestic billet trade improves on IME, prices drop
Domestic billet sales on the Iran Mercantile Exchange rose sharply by 78% w-o-w. However, the average sales price inched down approximately by 1%, w-o-w.
Around 103,025 t of billets were traded on IME in the week ending 22 Dec’21 at an average sales price of 126,826 Rial. Last week, about 57,750 t of billets were traded on IME at an average sales price of 127,610 Rial.
Outlook
If sources are to be believed, Iranian steel prices are less likely to fall further as market participants feel that prices have already bottomed out. Also, limited stocks with the mills and gas curtailment issues will also keep prices supported.
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