Iran: Billet export prices gain on fewer offers

Iranian billet export offer prices gained on the back of mills' disinterest in offering too much volumes in overseas markets as they are booked until early Oct'20.

Trading in export cargoes was quiet this week compared with active trading last week.

SteeMint's assessment for Iranian billet has moved up by $5/t w-o-w to $390-395/t, FoB Iran.

Resumption of billet supply at the Iranian Mercantile Exchange (IME) after a two-week pause also squeezed export volumes, supporting FoB prices.

Further price gains in the export market may not be sustainable, said an executive with Iran's market research company, Planner.

Chinese bids for Iranian billet are currently at around $415/t, CFR while SE Asian countries are bidding at $405/t, CFR levels, because of slightly lower freight than China.

South Kaveh Steel Company (SKS) floats 30,000 t billet export tender- A leading billet exporter, SKS, has floated an export tender for 30,000 t for end-Sep'20/early Oct'20 shipment. The company is expecting bids at $395/t, FoB Iran.

Domestic billet prices witness a sharp drop in recent trades at IME- Iran's domestic billet prices have dropped by IRR 3527/kg ($37/t) in a trade event hosted by the IME on 4 Aug'20. Approximately, 90,900 t billets were traded at an average price of IRR 77,373/kg ($410/t). Mills were not offering billets at the IME over the past two weeks due to cost viability concerns.