Iran billet export market remains inactive on uncertainty over duties

Iran's billet export market observed a lack of activity this week, as mills refrained from issuing export tenders due to uncertain sentiment regarding billet prices in the region. Billet exporters are adopting a wait-and-watch approach regarding the government's export policy on semi-finished products, including billets and slabs, with the possibility of export duties being reduced in the near future from 2% to 1%.

Chadormalu Mining, an Iranian steel mill, concluded an export tender for 30,000 tonnes (t) of billets at approximately $487/t FOB, as per sources. Export trade volumes in the region have decreased due to the imposition of export duties. Meanwhile, in the domestic market, the ongoing gas shortage during winter continues to impact production.

According to SteelMint's latest assessment, Iran's billet (3SP) export prices remained unchanged w-o-w at $490/t FOB on 18 January, 2024.

Domestic billet prices edge up, rebar prices fall

Iran's domestic billet prices witnessed an increase on improved trades while demand for finished steel is yet to improve, sources informed SteelMint.

Billet sales on IME robust this week

Domestic billet sales saw a significant 25% w-o-w increase, while the average sales price on the IME remained largely stable as compared to the previous week.

During the week under review, approximately 123,961 t of billets were traded on the IME at an average sales price of 187,191 rial. In the preceding week, around 99,425 t of billets were traded, with an average price of 186,725 rial.