On falling global scrap prices and fluctuating Chinese rebar futures, the billet export offers from Iran saw a marginal dip this week. The market remained silent, with no export deals reported during the week. A high bid-offer spread has witnessed due to Chinese holidays (starting from today till 8 Oct’20). The Chinese bids for Iranian billets were at $415/t, CFR levels, while mills are targeting $410/t, FoB levels.
During the conversation with SteelMint, the Planner’s executive said, “the market is dizzy. However, mills still want to achieve higher price levels, but buyers are aware of the drop and hesitate to buy anything. It’s a matter of time. It would be interesting to see who breaks first.”
SteelMint assessed billet export offers from Iran to be at $405-410/t, FoB, down by $5 against last week.
ESCO floats 20,000 t billet export tender: Esfahan Steel Company, one of Iran’s leading steel exporter, has floated an export tender for 20,000 t billets. The shipment is likely to be scheduled by Dec’20. The company is expecting a price level of $410/t, FoB Iran. According to the company official, the tender is likely to be concluded in the coming Iranian week.
On the other hand, Chadormalu Mining and Industrial Company, another leading exporter of Iran, is likely to float the billet export tender by coming Tuesday, 6 Oct’20. We are expecting the tender quantity to be between 20,000-30,000 t.
Domestic billet prices at IME witness marginal fall: The domestic billet prices have witnessed a marginal drop of IRR 832/kg in a recent trade event hosted by the Iranian Mercantile Exchange (IME). However, the offered quantity saw a w-o-w increase of 25,800 t. According to SteelMint sources, On 29 Sep’20, approximately 109,700 t billets traded at an average price of IRR 99,144/kg ($407/t).
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