Iran’s billet export market remained active this week with prices increasing in recently-concluded deals. Hike in Chinese steel prices and global scrap price recovery have kept billet export prices supported, SteelMint understands.
- An Iranian mill concluded an export deal for 20,000 tonnes (t) of steel billets at around $465/t FOB, sources informed SteelMint. Prices have corrected upwards by around $15/t as against the last-concluded tender at the beginning of August.
- In another deal, an Iranian mill sold 30,000 t of BF-route steel billets at $460-465/t FOB.
- Meanwhile, another 30,000-40,000 t slab export tender was concluded by a leading steel mill at around $440/t FOB Iran and the shipment is scheduled for mid-October.
SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $461/t FOB on 16 August, a marginal increase of around $2/t, w-o-w.
Domestic billet, rebar prices fall
Domestic billet and rebar prices witnessed a sharp fall w-o-w amid the decline in base prices at the Iran Mercantile Exchange (IME), sources informed SteelMint.
Domestic billet trade on IME down w-o-w
Domestic billet sales on the Iran Mercantile Exchange (IME) fell by 28% w-o-w. However, the average sales price remained largely stable w-o-w.
Around 96,200 t of billets were traded on IME in the week under review at an average sales price of 129,044 Rial. Last week, about 133,760 t of billets were traded at an average sales price of 129,157 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, with a recovery in global scrap prices, billet prices may remain supported, SteelMint notes.
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