Iran’s billet export market remained largely inactive this week, with no active deals for exports recorded by SteelMint so far. Low bids from the key importing nations, limited trades and competitive offers from Russia weigh on the export market, SteelMint notes.
Moreover, economic activity in Iran is getting hampered due to the pending political negotiations involving the Joint Comprehensive Plan of Action (JCPOA), sources informed.
SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $460/t FOB on 29 September, up around $1/t w-o-w.
Apparent consumption rises
Iran’s billets and blooms consumption increased significantly by 32% y-o-y to 5.86 million tonnes (mnt) in the first five months of the current Persian year (March-August 2022), according to data released by the Iranian Steel Producers Association (ISPA).
Domestic trade on IME falls
Meanwhile, domestic billet sales on the IME fell 28% w-o-w, while the average sales price decreased by 1%.
Around 111,750 t of billets were traded on the IME in the week under review at an average sales price of 127,443 Rial. Last week, about 154,860 t of billets were traded at an average sales price of 128,219 Rial.
Outlook
Iran’s steel billet export prices are expected to remain under pressure amid competitive offers from Russia and low demand. Meanwhile, futures trading and market stability also hinge on the ongoing political negotiations.
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