Iran: Billet Export Tender Likely to be Concluded above USD 495/MT

In line with hike in global billet export offers, Iranian billet export offers have also observed momentum this week.

As per the latest assessment made by SteelMint the reference prices for billet (150*150 mm) export from Iran is around USD 495-500/MT, FoB Iran. A month back, prices were hovering around USD 415-420/MT, FoB Iran.

In talk with market participants, SteelMint learned that an Iranian steel maker had issued a tender for export of around 30,000 MT for October shipment. As per sources the tender fetched participation from about 20 companies and is likely to be concluded at USD 495-500/MT, FoB Iran.

The cargo is likely to be shipped to GCC (Gulf Cooperation Council) member nations.

Absence of Chinese billet supplies, improved global demand and rising scrap prices have pushed up billet export offers.

Iran steel exports up 3% Y-o-Y in first four months of Iranian FY18 – During first four months of Iranian FY18 (21 Mar-22 Jul’17) Iran based steel producers exported 2.13 MnT semi-finished and finished steel products, up 3% Y-o-Y.

Khouzestan Steel Company (KSC) was the largest exporter and it exported 925,289 MT of slab, bloom and billet up 48% Y-o-Y. Out of the total quantity exported share of billets was 127,626 MT and that of bloom was 512,430 MT.

Source: IMIDRO

Iran aims to export 8 MnT steel in Iranian FY18 – As part of the 20-Year Vision Plan (2005-25), the Iranian steel industry is targeting to become the world’s 6th largest steelmaker by reaching an output capacity of 55 MnT pa by 2025. Steel exports from Iran are likely to increase to 8 MnT this FY18 which was around 6 MnT last fiscal.