Iran: Billet export market largely quiet, prices edge up w-o-w

Iran's steel billet export market remained silent this week. Low buying interest from the key importing nations, limited trade, and the harsh winter in the region held back trade activities in the export market.

An Iranian steel mill has recently concluded an export deal for 80,000 t of slabs at around $533/t FOB, sources informed SteelMint. However, the hike in scrap offers has kept export prices supported.

SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $545/t FOB on 31 January, up $2/t w-o-w.

Billet exports up in Mar'22-Jan'23

Iran's billet and bloom exports in the first 10 months of the current Persian year (March 2022-January 2023) registered an 11% increase y-o-y to 4.36 mnt, according to data from the Iranian Steel Producers Association (ISPA).

Domestic billet, rebar prices rise

Iran's domestic billet and rebar prices saw an upward trend amid limited supply due to a lack of supply of direct reduced iron (DRI) in the domestic market, sources informed.

Domestic billet trade on IME falls

Domestic billet sales on the Iran Mercantile Exchange (IME) decreased by 20% w-o-w. However, the average sales price inched up marginally by 2% w-o-w.

Around 80,300 t of billets were traded on the IME in the week under review at an average sales price of 169,353 Rial. Last week, about 100,325 t of billets were traded at an average sales price of 166,559 Rial.

Outlook

Iran's semi-finished steel export prices are expected to remain supported because of a rise in global scrap prices and the country facing a severe energy shortage. However, a reduction in gas supplies during the winter may result in a decline in production volumes, which is likely to affect billet export allocations.