Khouzestan Steel Company (KSC) – Iran’s largest steel exporter in Q1 Iranian FY18 is likely to come up with the fresh billet export tender towards the end of Jul’17 for October shipment. KSC is heard to have booked with deliveries till end September and thus the fresh export tender that will be issued will be for October delivery.
SteelMint learned from an Iran based market participant that billet demand is quite high both in domestic as well global market. Iranian steel mills are eyeing current billet export offers to be around USD 440/MT, FoB Iran, higher by USD 15-20/MT against last concluded tender price.
KSC last billet & slab export tender fetched good response – Earlier this month, the company invited tender for export of 40,000 slab and 30,000 MT billets for which the bid submission due date was 7 July’17 as per Iranian Standard time. The shipment period for billet is scheduled to take place in Sept’17 and that for slabs is scheduled for Jul end – early Aug’17.
As per market sources report to SteelMint, the billet tender received bids from 17 companies and the bids received were around USD 410-415/MT, FoB Iran. In line with market sentiments the company was eyeing at levels around USD 415-420/MT, FoB Iran.
As per reports, Esfahan Steel Сompany (ESCO) is also seen exporting billets actively and is expecting further hike in export offers in the near term.
Lesser availability of Chinese billets owing to shut down of induction furnaces resulted in supply crunch in global market. This along with improved demand has been driving global billet export scenario resulting in price surge.
KSC remained the largest steel exporter in Q1 Iranian FY18 – According to IMIDRO report, Iranian steel makers have exported 1.58 MnT semi-finished and finished steel during 1st quarter of Iranian FY18 spanning from 21 Mar-21 Jun, up 2% Y-o-Y. Khouzestan Steel Company (KSC) was the largest exporter and it exported 809,429 MT of slab, bloom and billet, up 66% Y-o-Y.
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