Iran: Billet export prices range-bound in recent deals, domestic sales up post-holidays
Iran’s billet export market remained less active this week amid the Muharram holidays. Prices remained range-bound at $450-460/t FOB Iran. SteelMint’s...
Iran's billet export market remained less active this week amid the Muharram holidays. Prices remained range-bound at $450-460/t FOB Iran. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $460/t FOB on 9 August, a marginal increase of around $4/t, w-o-w.
- An Iranian mill concluded an export deal for 25,000 tonnes (t) of steel billets towards the end of last week. The deal was heard concluded at around $450/t FOB and the shipment is scheduled for September 2022.
- In another deal concluded, an Iranian mill sold 40,000 t of billets at $500/t CFR Indonesia.
- Meanwhile, Mobarakeh Steel Company (MSC) has floated a 40,000-t steel slab export tender. The due date for the tender is 12 August 2022 and the shipment is likely to be scheduled for September.
Domestic billet trade on IME up w-o-w
Domestic billet sales on the Iran Mercantile Exchange (IME) rose by 9% w-o-w. Meanwhile, the average sales price increased marginally by 6% w-o-w.
Around 133,760 t of billets were traded on IME in the week under review at an average sales price of 129,157 Rial. Last week, about 122,400 t of billets were traded at an average sales price of 121,161 Rial.
Outlook
Amid power supply curbs, Iran's steel production is likely to remain limited in the near term, affecting billet export allocations. However, after the Iranian government announced ease in restrictions, mills were seen offering billets for exports quite actively. Also, with a recovery in global scrap prices, billet prices may also find support, SteelMint understands.