Iran, one of the largest billet exporter in MENA is currently facing sanctions from US, owing to which the billet export offers in Iran is falling continuously. Iranian billet export offers has declined further by USD 5-10/MT to USD 375-380/MT FoB. Last week, billet export offers of Iran were noted to be around USD 385-390/MT FoB.
As per SteelMint assessment, recently, a major Iranian steelmaker has closed an export deal of 40,000 MT billet at USD 375/MT FoB Iran.
Iran Domestic Market Billet Offers Increased Last Week
IR Steel quoted, “Billet price was upward during last week in Iran. Average price of sizes 125 and 150 mm Started the week at USD 601.50 /MT on last Saturday, By Sunday it dropped to USD 583/MT but by Monday onward it started rising to reach USD 632/MT ex-work including 9% VAT and custom duties. Higher long products prices made billet price upward. Actually long products market activity increased and improved billet demand.
Billet market participants believe that current prices are the bottom level as DRI base price at IME was USD 378 /MT with no demand and outside of IME was transacted at USD 309.5 /MT.”
Global Billet Export Offers Moved Down Further
CIS billet export offers have weakened by USD 5-10/MT further and is assessed in the range of USD 405-410/MT, FoB Black Sea against the last week offers of 410-420/MT FoB Black Sea.
Iranian Billet Export Decreases by 14% in Current Persian Year
Iran has exported 2,000,000 MT billet and bloom during the first eight months of current Persian year (21-Mar till 21-Nov’18). As per the data released by ISPA, export of billet during the period decreased by 14% against 2,325,000 MT exported during the same period of last Persian year.
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