Billet exports from Iran is increasing considerably in last few months owing to absence of Chinese cargo and increasing domestic steel production.
According to data released by Iranian customs, the country exported 2.56 MnT semi-finished steel in Iranian financial year Apr’16-Mar’17. Out of this, major export destinations were Thailand (22% share) followed by UAE, Oman and Taiwan.
Increasing exports of semi finished goods are quite visible by increased number of tenders that are being floated by local companies. This is also a result of low domestic demand and higher steel production.
Recently Khouzestan Steel Co. (KSC) is one of the subsidiary of Iranian Mines & Mining industries Development and Renovation Organization (IMIDRO). The company had floated an export tender of 20,000 MT billet and 40,000 MT slab, which closed on 26 May’17. According to sources company fetched bids at around USD 375-380/MT FOB for slabs and USD 380-385/MT FOB for billets.
Deals of over 100,000 MT billets by Iranian steel makers were heard concluded in the month of April.
Iran based billets are getting popular in South East Asian countries as prices are lower by USD 10-15/MT compared to CIS nations , Indian and Chinese billets. Last deal was heard at around USD 400/MT CFR Indonesia.
Iranian producers exported 5.53 MnT last year, up 40.6%, according to the Iran Steel Producer Association’s (ISPA). This included 1.79 MnT of finished steel products, down 16% year on year, and 3.74 MnT of semi-finished products, up 108%.
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