The Iranian billets exports market has remained less active after witnessing a deal towards last week’s close. An Iranian mill concluded an export deal of 25,000 tonnes (t) of billets (150mm) at around $683/t FOB Iran for mid-June shipment. Prices corrected by $12/t compared to last week.
SteelMint’s latest assessment of Iran’s billets (3SP) export prices stood at $683/t FOB on 21 April, down $12/t w-o-w.
Iranian mills are awaiting clarity on imposed export tariffs. It is to be noted that the ministry imposed export tariffs on various products, including steel, on 11 April. The export duty for steel products is at around 17% of the total product price.
Khorasan Steel floated a 25,000-t billet (150x150mm) export tender last week with the due date being 18 April. The shipment is likely to be scheduled for June. As per sources, the tender is still under negotiation.
Export tariffs worry mills
The Iranian Deputy Minister of Mines & Materials, in a letter to the Ministry, announced on 11 April the imposition of export tariffs on various products, including steel. In the case of steel billets, the export duty will be to the extent of 17% of the total product price. This move has been initiated to discourage exports, it is believed.
Billets, rebar domestic prices show recovery
Iran’s domestic billet and rebar prices saw a recovery after witnessing a continuous fall post-announcement of export tariffs on various products, including steel, by the Iranian government.
Billets trade on IME up by 17%
Domestic billets sales on the Iran Mercantile Exchange (IME) increased further by 17%. However, the average price was largely stable, w-o-w.
Around 60,800 t of billets were traded on IME in the week under review at an average sales price of 152,583 Rial. Last week, about 51,775 t t of billets were traded on IME at an average sales price of 152,458 Rial.
It seems that local Iranian players are focusing more on the domestic market post-tariff declared on exports.
Leave a Reply