Iran: Billet export prices surge further in a recent deal, domestic prices also followed the trend

• Khouzestan Steel Company (KSC), concluded a 30,000 t billet export tender at a price of $550-555/t, FoB Iran.
• Iranian billet export prices have risen by $25-30 against last week.
• SteelMint’s bi-weekly assessment for Iranian billets is $550-560/t, up by $25-30 w-o-w.

Iranian billet export prices surged again in a recent deal. According to SteelMint sources, Khouzestan Steel Company (KSC), Iran’s leading semi-finished steel exporter, concluded its 30,000 t billet export tender, floated last week. The company’s official reported that they achieved the price levels of $550-555/t, FoB Iran. The shipment is likely to be scheduled for early Feb ’21. Iranian billet export prices have risen by $25-30 against last week.

The global scrap prices have kept holding the billet export prices from the country at high levels. From the first week of Dec ’20 to date, we witnessed that Iranian mills have progressively concluded export deals. The Iranian billet export prices saw an m-o-m rise of approximately $90/t.

SteelMint’s bi-weekly assessment for Iranian billets is $550-560/t, up by $25-30 w-o-w.

For the last three weeks, we saw Iran’s domestic billet demand growing. The broad price difference between domestic and export prices is driving the local demand. During a conversation with Iranian mills, we learned that low domestic billet prices are encouraging the buying from re-rollers. The re-rollers are enjoying pleasing margins in finished products (rebars) by exporting them to neighboring countries like Iraq.

According to our sources, the Iranian rebar export prices are ranging between $490-510/t, exw. While billet prices for export and domestic market are hovering at $560/t, FoB Iran and $430-440/t, exw, respectively.

Owing to the above reasons, Iran’s apparent steel usage of billet/blooms during the first eight months of the current Iranian year (20 Mar-20 Nov ’20) amounted to 9.97 mn t, registering a 23% increase compared with last year’s corresponding period, Financial Tribune report shows.

Domestic billet prices at IME surge further by IRR 4,261/kg ($16/t): In a recent trade event hosted by the Iranian Mercantile Exchange (IME), the domestic billet prices have further surged by IRR 4,261/kg ($16/t).  According to SteelMint sources, approximately 133,000 t billets reported having traded at an average price of IRR 111,775/kg ($439/t). The quantity offered for the trade event was 134,352 t, while the base price was IRR 96,707/kg ($380/t).