The Iranian billet export market exhibited improvement this week, post-Eid holidays. Billet players were seen being cautious because of the uncertain situation arising in the exports market post-holidays. In addition, some Iranian mills were seen floating export tenders this week. They were waiting for the tender to conclude to get price clarity.
Some billet offers were recorded at around $480-490/tonnes (t) FOB Iran, sources informed BigMint. However, an export tender was concluded this week at lower levels.
Iranian mill Chadormalu Mining had concluded an export tender of 30,000 t of billets at $471/t FOB Iran. The delivery is scheduled for end-May, as per sources.
Additionally, Khouzestan Steel Complex (KSC) has floated an export tender of 30,000 t of billets and 50,000 t of slabs. The due date for the export tender is on 24 April, and the shipment is scheduled in early June, BigMint learnt.
Domestic billet, rebar prices drop amid weak market sentiments
Iran’s domestic billet prices continued to drop amid increased production due to higher DRI supply. Following the drop in billet prices, rebar prices also witnessed a downtrend.
Billet sales on IME drop this week
Domestic billet sales on the Iran Mercantile Exchange (IME) dropped by 33% w-o-w, while the average sales price on the exchange stayed largely stable as compared to the previous week.
During the week under review, approximately 168,060 t of billets were traded on the IME at an average sales price of 213,691 rial. In the preceding week, around 251,398 t of billets were traded, at an average price of 212,761 rial.