Iran’s steel billets export market remained silent this week as participants are awaiting tender results. Low buying interest from the key importing nations, limited trades and the harsh winters in the region have held back trade activities in the export market, SteelMint understands.
Meanwhile, market participants are awaiting the outcome of the export tender floated recently. Esfahan Steel Company (ESCO) had floated an export tender for 30,000 t of steel billets. The shipments are likely to be delivered in March.
“We are hopeful of getting bids of around $500-510/t FOB in the ongoing billet tender,” said a mill source.
SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $500/t FOB on 10 January, stable, w-o-w.
Iran’s semi-finished steel exports stable in Mar-Dec’22
Iran’s semi-finished steel exports (billets, blooms, slabs) in the first nine months of the current Persian year (Mar-Dec’22) totalled 5.18 mnt, stable y-o-y, according to data from Petrometals.
Indonesia emerged as the largest importer, holding a 23% share of Iran’s total exports. China occupied the second position with a 21% share, followed by Thailand and the United Arab Emirates (UAE) with 13% and 11%, respectively.
Domestic billet prices fall, rebar prices up
Iran’s domestic billet prices decreased w-o-w this week amid weak demand in the local market while rebar prices rose significantly owing to a shortage of material in warehouses, sources informed SteelMint.
Outlook
Iran’s semi-finished steel export prices are expected to remain supported because of a rise in global scrap prices and the country facing a severe energy shortage. However, a reduction in gas supplies during the winters in the region may result in a decline in production volumes which is likely to affect billet export allocations.
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