Iranian Domestic Billet Inched Up during Week 21

Iran, one of the largest billet producer and exporter in World has witnessed an increase in domestic billet price. Last few weeks market was unstable owing to Sanction and market was mostly stable but on 16-May’18, as Khouzestan Steel co offered billet at IME, its pricing made market confused.

Khouzestan Steel co billet was offered at base price of USD 524 /MT was finalized at USD 576 /MT ex-work including VAT, but it was a deal with 90 days payment which means 4.5% bank interest rate should be added to it. Owing to which on 16th May’18, Iranian domestic billet was noted to be around IRR 24,560/KG (USD 585/MT). On the next day prices inched down to around IRR 24,510/KG (USD 584/MT).

By considering the exchange rate of 1 USD as IRR 42,000, Market opened on 19th May’18, Iranian domestic billet was noted to be around IRR 24,370/KG (USD 580/MT). On the next day prices inched down to around IRR 24,330/KG (USD 579/MT). During mid of week billet prices went up to IRR 24,460/KG (USD 582/MT). Prices further went up on next day to IRR 24,750/KG (USD 589/MT). Towards the weekend prices were high at around IRR 24,820/KG (USD 491/MT).

As per Planner “The market is stabilizing at current levels since the market has accepted the current level for USD. It is believed that the prices won’t experience a sharp downturn before the sanctions get into the effect. It is clearly showing that the market is not so active and there are just some fluctuations.”

During the period scrap prices inched up, was hovering at around IRR 18,140/KG (USD 432/MT) to IRR 18,330/KG (USD 436/MT). Rebar Prices was noted to be around IRR 27,780/KG (USD 664/MT) to IRR 28,130 (USD 670/MT).

Prices in IRR/KG
Inputs taken from Planner