Iran domestic billet price witnessed a downfall of USD 10/MT W-o-W. Market opened on Saturday with domestic billet price as USD 439/MT including 9% VAT. Prices remained stable till mid of the week, went up Wednesday by reaching USD 443/MT again went down to USD 438/MT toward the end of the week.
As per market sources ” the demand for billet is low in Iran, also all the large producers are focussing on export for better realization and allocation for domestic market is low. We believe the next wave of price increase is on it way, if the prices in global market continue their uptrend.”
Despite downward trend, market insiders expect Iran domestic billet price rise mainly because DRI supply is limited at the moment, long product mills billet inventory is low owing to current holidays and low demand of long products. Also global billet price is upward which will also improve Iran billet price.
The difference billet and scrap was around USD 93-98/MT on other hand difference between billet and rebar was around USD 57-61/MT.
|
Commodities |
2/12/2017 | 3/12/2017 | 4/12/2017 | 5/12/2017 | 6/12/2017 |
7/12/2017 |
| Scrap | 343 | 344 | 343 | 343 | 345 | 345 |
| Billet | 439 | 439 | 439 | 438 | 443 | 438 |
| Rebar | 500 | 500 | 500 | 500 | 500 | 501 |
| Difference between Scrap-Billet | 96 | 95 | 96 | 95 | 98 | 93 |
| Difference between Billet-Rebar | 61 | 61 | 61 | 61 | 57 | 63 |
Source: Planner
KSC Offered two offers of billet/bloom at IME on 11th Dec’17. Initially KSC offer 5000 MT 5SP bloom for Feb 2018 delivery for around USD 427/MT,but the sales happened for 9000 MT on same price for same delivery period and 20,000 MT 5SP bloom for USD 435/MT for January 2018 delivery.
Inputs taken from Planner and IRSteel
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