Iran, one of the largest billet producer and exporter in world witnessed an increase in domestic billet price. As per Planner “the sharp drop in IRR/USD rate has made people to change their Rials into commodities in order to maintain the value of their money. Besides, since the CBI rate (1USD=42000 IRR) has been exempted for Iraq and Afghanistan market, exporting to these destinations is very profitable even after buying from the domestic markets, that is why the prices has risen significantly.”
1 – By considering the standard exchange rate of 1 USD as IRR 42,000, Market opened on 9th Jun’18, Iranian domestic billet was noted to be around IRR 26,510/KG (USD 631/MT).
2 – Domestic billet prices inched up to IRR 26,840/KG (USD 639/MT) on 10th Jun’18 and reached IRR 27,060/KG (USD 644/MT) on 11th Jun’18.
3 – During the midweek domestic billet price risen to IRR 27,640/KG (USD 658/MT) and on next day i.e. on 13th Jun’18, prices went up to IRR 28,320/KG (USD 674/MT.
4 – Towards the end of week billet price was noted to be around IRR 28,510/KG (USD 679/MT).
During the period scrap prices inched up, was hovering at around IRR 19,130/KG (USD 455/MT) to IRR 19,900/KG (USD 474/MT). Rebar Prices was noted to be around IRR 29,760/KG (USD 709/MT) to IRR 32,340 (USD 770/MT).
| Commodities | 9/6/2018 | 10/6/2018 | 11/6/2018 | 12/6/2018 | 13/6/2018 | 14/6/2018 |
| Scrap | 19,130 | 19,250 | 19,380 | 19,650 | 19,820 | 19,900 |
| Billet | 26,510 | 26,840 | 27,060 | 27,640 | 28,320 | 28,510 |
| Rebar | 29,760 | 30,120 | 30,400 | 30,840 | 31,510 | 32,340 |
| Difference between Scrap-Billet | 7,380 | 7,590 | 7,680 | 7,990 | 8,500 | 8,610 |
| Difference between Billet-Rebar | 3,250 | 3,280 | 3,340 | 3,200 | 3,190 | 3,830 |
Price Unit: IRR/KG
Source: Planner
SKS and KSC Sold Billets and Blooms in IME
Khouzestan Steel sold 30,000 MT of its billet at base price of USD 613 /MT which has increased by USD 37 /MT compared to the deal done around a month ago i.e. on 9th May’18. Base price has increased by 7% during a month which is logical when taking into account DRI price and its relation with billet base price.
South Kaveh Steel also offered 20,000 MT of its billet at base price of USD 557 /MT at IME last Wednesday and was succeeded to sell at USD 606/MT ex-work excluding VAT.
Inputs taken from Planner and IRsteel
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