Iran domestic billet price continue to rise in week 52 (23-12 till 28-12-2017) remained unaffected during holiday season. Market opened on Saturday (23-12) with average trading price as USD 485/MT and increased to USD 493/MT on very next day.
Prices went up to USD 500/MT on Christmas day, setting a record of highest domestic billet price during last 2 months. Post-Christmas, prices came down to USD 485-490/MT and towards the end of week price further came down to USD 479/MT.
As per market source “Demand for finished long product during this week was good, but towards the end of week finished long market also came down, resulted to decrease in billet price. Producers are preferring export market because of favoring market realization of dollar against local currency, which in turn resulting to limited supply of billet in domestic market. Market is quite now and demand for billet has decreased”.
Scrap was traded domestically at around USD 360/MT during the current week. Margin between scrap and billet during the week was around USD 116-137/MT.
Rebar domestic price was around USD 538-554/MT. As per market source “ By rising billet price at IME by major steel producers, long products were also upward till Tuesday, however towards the end of week price came down to USD 545/MT. Difference between billet and rebar during the week was around USD 53-65/MT.
| Commodities | 23/12/2017 | 24/12/2017 | 25/12/2017 | 26/12/2017 | 27/12/2017 | 28/12/2017 |
| Scrap | 360 | 362 | 363 | 365 | 365 | 363 |
| Billet | 485 | 493 | 500 | 495 | 487 | 479 |
| Rebar | 538 | 547 | 554 | 554 | 552 | 545 |
| Difference between Scrap-Billet | 125 | 131 | 137 | 130 | 123 | 116 |
| Difference between Billet-Rebar | 53 | 54 | 53 | 60 | 65 | 65 |
Inputs taken from Planner
Iran’s Khouzestan Steel Company Concluded 70,000 MT Billet and Slab Tender
Khouzestan steel company, one of the largest exporter of steel in Iran had floated an export tender for export of 30,000 MT billet and 40,000 MT slab for early Mar’18 and Feb’18 shipment respectively. The due date for bid submission was 27 Dec’17 till 18:00 hrs.
As per market source, export tender for billet was concluded at USD 520/MT FOB Iran. Destination for billet export tender is not yet specified. Quantity of billet offered by KSC for delivery increased to 35,000 MT as against initial offering of 30,000 MT in tender notice.
On parallel lines export tender for slab has been concluded at USD 485/MT FOB Iran. Slab is likely to go Far East Nation.
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