Iran, one of the leading billet exporters, saw a sharp increase in domestic sales too in the last one week. Domestic billet sales on the Iran Mercantile Exchange (IME) increased multiple times w-o-w on drop in average prices. Around 96,236 tonnes (t) of billets were traded in the last one week at an average sales price of 128,023 Rial on IME, as per data maintained by SteelMint.
Last week, SteelMint reported around 14,260 t of billets being traded at an average sales price of 130,500 Rial on IME.
Iran billet export prices fall in recent deal: An Iranian mill has reportedly concluded another package of 30,000 t of steel billets for exports, sources informed SteelMint. The shipment is likely to be scheduled for Oct-Nov’21, According to market sources, the deal was concluded at a price level of $640/t FOB Iran.
SteelMint’s bi-weekly assessment of Iranian billets (150mm, 3SP/4SP) exports stood at $635-640/t FOB on 22 Sept’21.
China re-bar futures recover post holidays: China’s rebar futures increased sharply after two days’ holidays. The most-traded contract for Jan’22 delivery on the Shanghai Futures Exchange (SHFE) closed at RMB 5,656/t ($875/t) today, up RMB 178/t ($27/t) against the last closing on 17 Sep’21.
Iran continued to be the absolute leader in steel billet shipments to China at 0.24 mn t in Aug’21, witnessing a noticeable increase of 85% m-o-m as against 0.13 mn t in Jul’21. However, in the coming months, these volumes are likely to remain lower owing to limited allocations due to power outages.
Outlook:
The near-term outlook remains mixed as the China market has just resumed trade after holidays and market participants are waiting for clarity.
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