Khouzestan Steel Company (KSC) – one of the major steel producers in Iran and subsidiary of Iranian Mines & Mining industries Development and Renovation Organization (IMIDRO) invited tender for export of billet and slabs.
The company invited tender for export of 40,000 slab and 30,000 MT billets. The due date for bid submission was 7 July’17 till 18:00 hrs as per Iranian Standard time. The shipment period for billet is scheduled in Sept’17 and that for slabs is scheduled for Jul end – early Aug’17.
According to the update received regarding the same as per a trade source – the company has received bids from 12 companies for its billet export tender and the details regarding the company to whom the tender will be awarded is likely to be out within 2 days. Market participants expect the billet tender must have received bids around USD 405-410/MT, FoB .
Indian billet (150*150mm) export offers are currently assessed at USD 415/MT, FoB India.
Amid rising demand and lesser billet supply global billet offers are moving up. Rising scrap prices have also resulted billet prices to move up. Black Sea billet export offers have hit one year high and are at USD 410-415/MT, FoB Black Sea. On the other hand Chinese billet export offers have remained non workable owing to high prices in domestic market.
Billets manufactured in Iran are becoming popular in South East Asian countries as they are cheaper by around USD 10-15/MT than those of other origin.
Iranian producers exported 5.53 MnT steel last financial year ending 20 Mar’17, up 40.6%, according to the Iran Steel Producer Association’s (ISPA). This included 1.79 MnT of finished steel products, down 16% year on year, and 3.74 MnT of semi-finished products, up 108%. The country has plans to increase its steel exports to 8 MnT in the current Iranian FY.
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