Iran’s Esfahan Steel Company (ESCO), one of the largest steel exporter from Iran has recently concluded an export deal of 10,000 MT billet for around USD 503-508/MT to Oman. ESCO has recently cancelled an export tender of 30,000 MT billet owing to low bids received. As per company sources, another export deal for billet at around USD 503-508/MT is under negotiation. Export has risen in Iran owing to currency depreciation, as export brings better realization.
ESCO has exported 805,434 MT of steel in first nine months of current Persian year registered a growth of 87% Y-o-Y. The company exported 115,451 MT of rebar up by 6% Y-o-Y, followed by beam and coil with 80,343 MT and 48,589 MT respectively. Beam shipments were down by 25% Y-o-Y, while coil exports surged up 999% Y-o-Y. Steel products listed as “other” made up to 561,051 MT of total exports, up by 167% Y-o-Y.
Iran Domestic Billet Prices Increased in Last Week
`As reported in the last week news that domestic billet is likely to increase owing to depreciation of Iranian Rials against USD, it is witnessed that billet prices increased in last week. The market opened on 20/01/2018 with billet price around IRR 19,730/KG (USD 435/MT). Prices went up to 19,980/KG (USD 441/MT) on Sunday. Prices went up to IRR 20,350/KG (USD 439/MT) in mid-week and towards the end of week prices were noted to be around IRR 19,830/KG (USD 437/MT).
As per Planner “The increase in domestic billet price is due to Iranian Rial depreciation, since no affective demand was seen in billet market. But towards the end of the week the dollar lost momentum and prices of steel started to ease. The market was fully under the effect of USD rise and fall.”
Scrap was traded at around IRR 15,660-15,990/KG (USD 345-351/MT). Difference between scrap and billet was noted to be around IRR 3,930-4,560/KG (USD 87-101/MT). Rebar was traded in domestic market at around IRR 22,330-22,830/KG (USD 493-503/MT) in previous week. Difference between billet and rebar was noted to be around IRR 24,100-28,800/KG (USD 53-64/MT).
| Commodities | 20/1/2018 | 21/1/2018 | 22/1/2018 | 23/1/2018 | 24/1/2018 | 25/1/2018 |
| Scrap | 15,660 | 15,720 | 15,790 | 15,830 | 15,850 | 15,900 |
| Billet | 19,730 | 19,980 | 20,350 | 20,230 | 20,020 | 19,830 |
| Rebar | 22,330 | 22,390 | 22,800 | 22,860 | 22,720 | 22,710 |
| Difference between Scrap-Billet | 4,070 | 4,260 | 4,560 | 4,400 | 4,170 | 3,930 |
| Difference between Billet-Rebar | 2,600 | 2,410 | 2,450 | 2,630 | 2,700 | 2,880 |
Price in IRR/KG
1 USD = IRR 45,330 ( Source: Bonbast.com)
Source and inputs taken from Planner
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