Iran: Steel billet export market sees muted trading, prices stable

Iran’s billet export market remained silent this week with prices remaining stable w-o-w. No deals for exports were recorded by SteelMint so far.

Meanwhile, a major Iranian semi-finished steel exporter, Chadormalu, floated an export tender for 30,000 tonnes (t) of steel billet with the due date being 6 September.

SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $456/t FOB on 30 August, stable w-o-w.

Domestic billet, rebar prices fall

Domestic billet and rebar prices witnessed a drop owing to the increased supply of billets on Iran Mercantile Exchange (IME), sources informed SteelMint.

Domestic trades on IME rise sharply 

Domestic billet sales on the IME rose sharply w-o-w. However, the average sales price witnessed a slight decrease of 1%.

Around 135,900 t of billets were traded on IME in the week under review at an average sales price of 125,402 Rial. Last week, about 10,700 t of billets were traded at an average sales price of 127,236 Rial.

Outlook

Amid power supply curbs, Iran’s steel production is likely to remain limited in the near term, affecting billet export allocations. Futures trade-related activities also depend on the results of current political negotiations. However, after the Iranian government announced ease in restrictions, mills were seen offering billet for exports quite actively.