Iran, one of the largest producer and exporter of billet is currently facing currency depreciation. Iranian Rial is currently trading at around IRR 47,100 against 1 USD in free market. In such situation export is proven to be more profitable for the producers against selling it in local market.
However, during the last week Iranian domestic billet prices edged up against a week earlier prices. Market opened on Saturday with around IRR 19,760/KG (USD 420/MT), the increasing trend followed on Sunday also, as the market registered the billet price to be around IRR 19,840 (USD 421/MT). Prices towards the mid-week was noted to be around IRR 19,850-19,880/KG (USD 421-422/MT). Billet was traded at around IRR 20,440/KG (USD 434/MT).
As per Planner “The demand is mostly speculative as everyone believes that to the current depreciation of Iranian Rial, prices might hike after Iranian New Year “Nowruz”. So buyers have started replenishing the stocks. “
Domestic price of Scrap also increased in last week as the commodity in Iran was traded at around IRR 16,000/KG (USD 340/MT) during the beginning of the week. Towards the mid of the week, prices went upto IRR 19,880/KG (USD 422/MT) and towards the end of the week, prices were noted to be around IRR 20,440/KG (USD 434/MT). Difference between scrap and billet during the week was noted to be around IRR 3,760-4,140/KG (USD 80-88/MT).
Rebar was traded at around IRR 22,660-22,740/KG (USD 480-483/MT) and the difference between billet and rebar was noted to be around IRR 2,300-2,900/KG (USD 49-62/MT).
| Commodities | 27/1/2018 | 28/1/2018 | 29/1/2018 | 30/1/2018 | 31/1/2018 | 1/2/2018 |
| Scrap | 16,000 | 16,020 | 16,070 | 16,070 | 16,210 | 16,300 |
| Billet | 19,760 | 19,840 | 19,850 | 19,880 | 20,130 | 20,440 |
| Rebar | 22,660 | 22,650 | 22,610 | 22,620 | 22,660 | 22,740 |
| Difference between Scrap-Billet | 3,760 | 3,820 | 3,780 | 3,810 | 3,920 | 4,140 |
| Difference between Billet-Rebar | 2,900 | 2,810 | 2,760 | 2,740 | 2,530 | 2,300 |
Source: Planner
Value in Iranian Rial/KG
1 USD = IRR 47,100
Iran’s Major Steel Producers Sold Billet and Slab at IME
Khouzestan Steel, one of the largest producer of steel in Iran has sold 20,000 MT billet at Iran Mercantile Exchange on 06-Feb’18 for IRR 19,965/KG (excluding 9% VAT) for mid Mar’18 delivery. The demand was for 30,600 MT.
On Parallel line KSC sold 20,000 MT slab at IME on 4-Feb’18 for IRR 19,941/KG (excluding 9% VAT) for mid Mar’18 delivery, the demand was for 25,600 MT slab.
HOSCO, a subsidiary of MSC has also sold 20,000 MT slab on 4-Feb’18 for IRR 20,018 (excluding 9% VAT) for early Apr’18 delivery, the demand was for 52,000 MT slab.
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