Iran: Billet export price witness further increase in recent trades

Iranian billet export prices witnessed a marginal rise for the second consecutive week on increased global scrap prices, supported by continuous climbing domestic prices.

However, marketers believe there is no real demand in the Iranian domestic market. The majority of the trades are happening due to the speculation. Since IRR is continuously falling against $, therefore people are exchanging their money with the steel commodities.

This week SteelMint assessed billet export offers from Iran to be at $410-415/t, FoB Iran, up by $5 against last week.

Recent deals & offers-

• KSC concludes billet export tender at an increased price-Khouzestan Steel Company (KSC), Iran’s leading steel exporter, has booked 30,000 t billets through a tender early this week. According to SteelMint sources, the company managed to achieve a price level of $415/t, FoB Iran, up by $9-10, against previously concluded tender. The tender has pulled the export offers from the country.
• Chadormalu floats 30,000 t billet export tender-Chadormalu Mining and Industrial Company, one of Iran’s leading steel exporter, has floated an export tender for 30,000 t billets. The shipment is likely to be scheduled by mid-Oct’20. In previously concluded tender, the company managed to achieve a price level of $404/t, FoB Iran.

Domestic billet prices rise sharply in recent trades at IME- Amid rising demand and depreciating IRR against $, Iranian domestic billet prices have witnessed a sharp rise amid in a recent trade event hosted by the Iranian Mercantile Exchange (IME). Yesterday, around 80,400 t billets traded at an average price of IRR 99,223/kg ($470/t), up by IRR 8,296/kg, against the previously concluded deals.

Semi-finished steel production up 7% y-o-y – Meanwhile, the steel production of the prime steel producers of Iran, during the first five months of the current Iranian year (20 Mar-20 Aug’20) reached 15.24 mn t, Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) data says.

The production of semi-finished steel has registered a 7% y-o-y growth to reach 9.24 mn t, while finished steel output recorded at 06 mn t, up by 2% y-o-y, during the first five months. In the fifth month, the semi-finished and finished steel production stood at 1.76 mn t (up, 2% y-o-y) and 1.21 mn t (up, 4% y-o-y).

Mobarakeh Steel Company, Khouzestan Steel Company, and Esfahan Steel Company were the top three steel producers during the period under consideration.