Iranian billet export prices have fallen slightly this week. However, we still didn’t witness any trades. A leading Iranian steel exporter has floated a billet export tender.
ESCO floats billet export tender: Esfahan Steel Company (ESCO), one of Iran’s leading steel exporters, floated a billet export tender for 20,000-30,000 t billets.
“Majority of Iranian mills are holding back from offering billet for exports, considering the price drop in the global market. Global billet prices have fallen on the back of a decline in bids and plunge in global scrap prices”, said a participant from a leading Iranian steel exporter.
SteelMint’s billet export price assessment stands at $560-565/t FoB, lower by $5 w-o-w.
The domestic billet market also remained silent, with negligible billets reported having traded against the offered quantity at the Iranian Mercantile Exchange (IME). This is being attributed to low demand as the re-rollers are having enough stock with them. It is a good situation for exporters and a concern for those who only cater to the domestic market.
IME reported limited billet trades: This week, approximately 600 t billets were traded at the Iranian Mercantile Exchange (IME) at an average price of IRR 121,599/kg, down by IRR 1,614/kg. The offered quantity reported was around 195,000 t.
Iranian steel exports fall by 13% y-o-y during 9M of the current Persian year: Exports of Iran’s major steel producers dropped by 13% during the first three-quarters of the current Iranian year (20 Mar ’20-20 Feb ’21) to reach 4.78 mn t. With 1.1 mn t of exports, Khouzestan Steel Company (KSC) remained the largest steel exporter. However, the company experienced a 20% y-o-y drop during the period under consideration. On the other hand, these steel mills (major) have registered an m-o-m rise of 35% in Dec ’20.
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