Iranian billet export prices remained broadly stable this week. However, there were indications for a drop in prices in the coming week. Due to bid-offer disparity and continuous falling Chinese rebar futures, the country witnessed limited billet bookings for this week. The mills are offering in the range of $415-420/t, FoB Iran levels, while the buyers are bidding at $400/t, FoB Iran levels, SteelMint learned from market participants.
SteelMint assessed the billet export offers from Iran to be at $415/t, FoB Iran, unchanged against last week.
Chadormalu concludes billet export tender at increased prices, $6 m-o-m- Chadormalu Mining and Industrial Company, one of Iran’s leading steel exporter, had floated an export tender for 30,000 t billets. According to the company’s official report, the tender concluded at a price level of $410/t, FoB Iran, up by $6 against previously floated tender in Aug’20. The shipment is likely to be scheduled for end-Oct’20. The company may float another billet export tender by next week.
Iranian government increases billet supply at IME for this week- On rerollers complaints about the insufficient billet supply, the Iranian government has asked steel mills to raise supply at the Iranian Mercantile Exchange (IME). Concerning the same, the billet supply at IME has increased to twice a week. For this week, the supply schedule was on 20 Sep’20 and 22 Sep’20. On 20 Sep’20, 66,000 t billets traded at an average price of IRR 97,494/kg ($426/t), while on 22 Sep’20, the same was 83,900 t at an average price of IRR 99,976/kg ($437/t). Approximately 150,000 t billets traded during this week.
Iran billet/bloom exports up 7% y-o-y in first five months – Meanwhile, the steel exports of Iran’s major steel producers have dipped by 28% y-o-y to reach 2.98 mn t, during the first five months of the current Iranian year (20 Mar-20 Aug’20), Iranian Steel Producers Association’s latest report shows. Semis exports stood 2.21 mn t (down, 18% y-o-y), while finished steel exports recorded at 744,000 t (down, 49% y-o-y). Notably, exports of billet & bloom stood at 1.76 mn t, up by 7% y-o-y.
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