Iran: Billet export prices hit over 2.5 years high

Iranian billet export prices are on a continuous surge. It was the third consecutive week when offers from the country saw a steep rise. The prices have surged by $20-25/t w-o-w in a recent deal. Since the first week of Dec ’20, Iran’s billet export prices have witnessed a spurt of around $50-55. Prices have hit over 2.5 years high as similar levels were last seen in Apr ’18, as per data maintained with SteelMint.

The increasing global scrap prices are keeping the billet export prices supported across the globe. The Turkish imported scrap prices have increased further by around $10 in a deal concluded for Feb ’21 shipment, credible sources reported to SteelMint. Our assessment for HMS 1&2(80:20) (Bulk, US Origin) is currently at $475/t, CFR Turkey, up by $50 w-o-w.

This week we captured mixed responses from the Iranian mills about their plans for the current market situation. One of the leading mill’s officials said, “finished steel is likely to be offered for the export market and semis are likely to be voluminously catered to the domestic market.”

On the other hand, Khouzestan Steel Company (KSC) is negotiating its billet export tender, while Chadormalu concluded the tender. Details are as below-

• Khouzestan Steel Company (KSC), Iran’s leading steel exporter, floated an export tender for 30,000 t billets. According to SteelMint sources, the company is likely to conclude the tender this week. The company is expecting the price levels of $ 510-520/t, FoB.
• Chadormalu Mining and Industrial Company recently concluded a 30,000 t billet export tender. The company managed to achieve a price level of $527/t, FoB. The shipment schedule is for end-Jan ’21/early-Feb ’21 with the African nation as a likely destination.

SteelMint’s assessment for billet export offers from Iran has moved up by $25-30 w-o-w and is $520-525/t, FoB.

Domestic billet prices at IME surge by IRR 9,646/kg ($40/t): The domestic billet prices at the Iranian Mercantile Exchange (IME) witnessed a steep rise of IRR 9,646/kg ($40/t) amid rising demand. In a recent trade event hosted by IME, approximately 126,000 t billets reported having traded at an average price of IRR 107,514/kg ($423/t). The base price was IRR 97,402/kg ($384/t), and the offered quantity was 131,265 t.