Iran’s billet export market remained less active this week with prices falling further in recently concluded deals. Declining global scrap prices, low bids, and limited trade have pulled down billet export prices, SteelMint notes.
An Iranian mill concluded an export deal for 30,000 tonnes (t) of steel billets at around $460/t FOB. The shipment is likely to be scheduled for mid-Sept’22. Prices have corrected downwards by around $15/t as against the last concluded tender towards the end-July.
SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $460/t FOB on 2 August, a fall of around $13/t, w-o-w.
Billet exports, production up in Mar-Jun’22
Iran’s billets and blooms exports in the first three months of the current Persian year (March-June, 2022) registered a significant 25% increase y-o-y to 1.32 mnt, while production of the same stood at 5.61 mnt in the period under review, up 4%, y-o-y, according to latest data released by the Iranian Steel Producers Association (ISPA).
Domestic billet, rebar prices rebound
Domestic billet and rebar prices have witnessed a recovery on the back of improved trading activity in the domestic market, sources informed SteelMint.
Domestic billet trade on IME down w-o-w
Domestic billet sales on the Iran Mercantile Exchange (IME) decreased by 3% w-o-w. Meanwhile, the average sales price fell too by 5% w-o-w.
Around 122,400 t of billets were traded on IME in the week under review at an average sales price of 121,161 Rial. Last week, about 125,675 t of billets were traded at an average sales price of 128,012 Rial.
Outlook
Amid power supply curbs, Iran’s steel production is likely to remain limited in the near term, affecting billet export allocations. However, after the Iranian government announced ease in restrictions, mills were seen offering billets for exports quite actively. Also, as buying bids are falling, export prices may see a dip.
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