Iran: Billet export prices gain on SE Asia deals

The Iranian billet market was active this week with approximately 100,000 t billets booked for SE Asian destinations, lifting offer prices.

SteeMint assessment for FoB Iran billet price moved up by $5/t to $385-390/t.

Export deals noted by SteelMint during this week-

IME reported no billet trades for the consecutive week- No billet trades were reported at the Iranian Mercantile Exchange (IME) for the second consecutive week.

Confusion about change in billet price coefficients used to set iron ore prices prevented mills from offering billet at the IME, an executive of steel marketing research company Planner told SteelMint.

"Yesterday, the mines ministry decided to leave the coefficients unchanged for now as this could cause inflation in end products. So, next week, mills might offer billet at the IME again," said the executive.

Future outlook:

Most of the Iranian mills are offering for Oct'20 shipments as they are booked till Sep'20. There are concerns that current bullish sentiments may fade in August.