Iran: KSC Issues 30,000 Billet Export Tender

Khouzestan Steel Company (KSC) – Iran’s largest steel exporter has invited tender for export of 30,000 MT billet for early November shipment.

The steel billet offered is of size 130*130 mm/or 150*150 mm and of grade 3 SP, 5 SP (ASTM A 36, SS 400 ASTM A615 Gr 40, ASTM A615 Gr 60). Bid submission due date for the same is 22 Sept’17 at 18:00 hrs as per Iranian local time.

According to market sources, Iran’s last floated billet export tender in beginning of Aug’17 fetched good response and was heard to have concluded above USD 495/MT, FoB Iran.

Iran current billet market overview – Domestic billet prices in Iran witnessed a drop last week owing to fall in long steel prices and dull demand. Average price for 150*150 mm billet was seen at USD 485/MT (ex-works, including 9% VAT).

Market participants highlighted that major steel mills in Iran are seen offering billets at USD 510-520/MT, FoB Iran. While smaller mills having less exposure to global market have reduced offers to USD 470-480/MT, FoB Iran following weak sentiments in domestic market.

KSC has kept billet prices unchanged at IME (Iran Mercantile Exchange) at USD 552/MT (ex-works, excluding VAT) for 150*150 mm billets of length 12 metres. It is unlikely that it will decline its prices as it is working as an index on the basis of which prices of DRI, pellet, concentrate are calculated.

KSC 40,000 MT slab export tender – KSC has also issued export tender for 40,000 MT slab for end October shipment.

The prime concast steel slab offered is of grade SS400 and/or SAE 1008 and S235. Bid submission due date for the same is 22 Sept’17 at 18:00 hrs as per Iranian local time.

KSC steel exports increased significantly this fiscal – During first five months of Iranian FY18 (21 Mar-22 Aug’17) Iran based steel producers exported 2.64 MnT semi-finished and finished steel products, up 12% Y-o-Y. KSC remained the largest exporter and it exported 1.16 MnT of slab, bloom and billet up 72% Y-o-Y. Out of the total quantity exported share of billets was 242,440 and that of bloom was 609,842 MT.