Iran: Billet export market silent, domestic trade resumes on IME

Iran, one of the leading billet exporters, continues to remain quite since the last one month owing to power outages and other policy restrictions on exports.

No offers or deals for billet exports were concluded recently. While talking to SteelMint, one of the steelmakers from Iran revealed that bids are falling sharply and it is not a good time to take up export bookings. Also, power outages led to production curtailment which resulted in limited allocations.

The Mining Industries Office of the Government of Iran, softening its earlier stand, has lifted the restrictions barring around 84 steel mills from exporting long steel products. Further, the government extended export licenses for one more month - till Oct'21.

In the latest update received, the government's decision came after the Iranian Steel Producers Association (ISPA) voiced protests against the sanctions on exports which saw several mills getting out of the exports purview. It may be noted, due to the sanctions, the licences of 84 mills got revoked. They were barred from exporting long steel products.

Iran's exports of billets and blooms in the first four months (21 Mar'21-20 Jul'21) of this Persian Year stood at 1.69 million tonnes (mn t), up by 26% compared to the corresponding period last year (CPLY).

Domestic billet trade resumes on IME: Domestic steel sales on the Iran Mercantile Exchange (IME) resumed after a gap of a couple of weeks. Around 94,700 tonnes (t) of billets were traded in the last one week at an average sales price of 142,704 Iranian Rial on the IME, as per data received by SteelMint.

Around 107,500 t of billets were last traded on 3 Aug'21 at an average sales price of 140,237 Iranian Rial.

Iran's slab, sponge iron export market gains momentum: Khouzestan Steel Company (KSC), Iran's leading steel exporter, has floated a tender for exports of 40,000 t of steel slabs. The shipment is likely to be scheduled for the end of Sept'21.

An Iranian mill has concluded an export tender of 30,000 t of sponge iron, sources confirmed to SteelMint. The tender was concluded at around $355/t exw and the shipment is scheduled for Sept'21.

Sponge iron exports from Iran were recorded at 415,000 t in the first four months of the current Persian Year, up by a whopping 569% compared to the corresponding period last year.