Iranian billet export prices witnessed a sharp drop in the recently concluded deals. Declining global prices, low bids, limited trade, and cheaper billet offers from Russia have continued to drag down billet export prices to over a one-year low, SteelMint notes.
An Iranian mill concluded an export deal for 40,000-50,000 tonnes (t) each of steel billets and slabs. Both the deals were concluded at $530/t FOB for end-August shipments. Iran’s billet and slab export prices have fallen by around $30/t and $40/t, respectively as against the company’s last concluded tender at the beginning of June. Meanwhile, another export tender for 30,000 t of steel billets received bids at around $532/t FOB for July shipment.
SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $530-540/t FOB on 21 June, down around $20/t, w-o-w.
Domestic billet, rebar prices fall
Iran’s domestic billet and rebar prices continued their downward trend after the government’s interference to reduce prices following the decline in global prices, sources informed SteelMint.
Domestic billet trade at IME up sharply
Domestic billet sales on Iran Mercantile Exchange (IME) rose sharply by 220% w-o-w. However, the average sales price witnessed a 7% w-o-w marginal fall.
Around 257,700 t of billets were traded on IME in the week under review at an average sales price of 138,309 Rial. Last week, about 80,600 t of billets were traded at an average sales price of 148,445 Rial.
Outlook
Amid power supply restrictions, Iran’s steel production is likely to remain restricted in the near term, affecting billet export allocations. However, the ease in restrictions may become a deciding factor for the export market. Also, as buying bids are falling, export prices may see some correction in the near term.
.jpg)
Leave a Reply