Iran: Billet export market range-bound in recent deals amid hike in Chinese steel prices

Iran's billet export market remained largely silent this week with prices remaining range-bound in a recently-concluded deal. Hike in Chinese steel prices and the energy crisis in the European Union (EU), along with Turkey, supported billet export prices, SteelMint observed.

• An Iranian mill concluded an export deal for 40,000 tonnes (t) of steel billets at around $460/t FOB for October shipment, sources informed SteelMint. Prices have remained range-bound as against the last concluded tender in the previous week.
  
  
• Another 20,000-30,000 t slab export tender was concluded by a leading steel mill at around $430/t FOB Iran and the shipment is scheduled for end-October.
  
  
• Meanwhile, Chadormalu and Sirjan Steel Company have floated steel billet export tenders of 30,000 t each.
  
  

SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $459/t FOB on 13 September, a marginal decrease of around $2/t w-o-w.

Domestic billet, rebar prices up amid hike in DRI prices

Domestic billet and rebar prices saw a significant increase this week due to active buying interest amid declining stocks and hike in direct reduced iron (DRI) prices, sources informed SteelMint.

Domestic trade on IME up w-o-w

Domestic billet sales on the IME rose 24% w-o-w. Meanwhile, the average sales price witnessed a slight increase of 2%.

Around 189,370 t of billets were traded on the IME in the week under review at an average sales price of 126,091 Rial. Last week, about 153,100 t of billets were traded at an average sales price of 123,287 Rial.

Outlook

With a hike in Chinese steel prices, billet prices may remain supported, SteelMint understands.