Iranian government has come up with a formula to calculate price of concentrate, pellet and DRI according to the cash sales of Khouzestan Steel Complex (KSC) billet in Iran Mercantile Exchange (IME). Thus these products cannot be priced above or below this price.
The price of concentrate has been fixed at following percentages:
|
Name of Mine |
Buyers | |
| MSC (Mobarakeh Steel Complex) |
KSC (Khouzestan Steel) |
|
| Gol Gohar | 12.5% | 12.5% |
| Gohar Zamin | 12.5% | 12.5% |
| Chadormalu Mining & Industrial Co (CMIC) | 13.8% | 13.8% |
| Iran Central Iron Ore Co. (ICIOC) | 13.5% max | 12.5% |
Price for pellet has been fixed at a percentage of 21.5% of billet price of KSC to be used by Khorasan Steel as well as other steel mills. For DRI equivalent to 50% of value of billet of Khouzestan Steel Complex mills to be consumed by all steel mills.
In conversation with Iranian market participants, SteelMint learned that steel makers are not very comfortable with this formula and are of the view that sometimes price of concentrate and pellets in domestic market would be higher than export market.
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