Iran: Billet export market awaits tender outcome, prices likely to firm up

Iran's steel billet exports market remained silent this week, awaiting tender outcomes. Low buying interest from the key importing nations, limited trades and the upcoming winter have held back trade activities in the export market, SteelMint understands.

SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $455/t FOB on 6 December, inching down by around $2/t w-o-w.

Meanwhile, market participants are awaiting the outcome of the export tender floated recently. Esfahan Steel Company (ESCO) had floated an export tender for 30,000 t of steel billets.

Notably, imported scrap prices in Turkey have risen by $15-20/t w-o-w which is likely to push up Iranian billet export offers, highlighted sources.

Domestic billet, rebar prices head north

Iran's domestic billet and rebar prices continue to rise on sharp decrease in direct reduced iron (DRI) production and reduction in gas supply due to cold weather in the region, sources informed SteelMint.

Outlook

Iran's steel billet export prices are expected to remain supported in the near term because of the sharp rise in global scrap prices. Moreover, traders are likely to get better clarity on Iranian semi-finished steel export prices after the tender outcomes. However, reduction in gas supply amid cold weather in the region may result in a marginal drop in steel production levels.