Iran: Billet export prices remain stable in recent deals

Iranian billet export market witnessed limited trades this week. Although, mills kept the offers unchanged. But the majority of the buyers have not seen bidding in parallel with the market facts. For instance, the futures broadly possessed an upward trend from 15-21 Oct'20 and seen to have increased by RMB 34 during the period under consideration. On the other hand, the buyers did not raise the bids and have seen bidding in the range of $420-425/t, CFR levels for Iranian billets, unchanged against last week.

Chadormalu concludes 30,000 t billet export tender- Chadormalu Mining and Industrial Company, one of the leading steel exporters of Iran, is reported having concluded its 30,000 t billet export tender, floated last week. According to SteelMint sources, the company achieved a price level of $412/t, FoB, up by $2 against previously concluded tender. During H1 Persian Year (20 Mar-20 Sep'20), the company exported approximately 270,000 t billets.

Iranian domestic billet prices witness a sharp fall- The domestic billet prices at the Iranian Mercantile Exchange (IME) saw a sharp decline of IRR 8,602/kg ($47/t) amid sluggish demand. In a recent trade event hosted by IME, approximately 75,400 t billets traded at an average price of IRR 95,784/kg ($346/t).

Iran's semi-finished steel production up 10% y-o-y- Iran's semi-finished steel production during the H1 Persian Year reached 14.39 mn t (up 10% y-o-y). The billet production was recorded at 8.64 mn t (up by 13% y-o-y), while for the slab, it stood at 5.76 mn t (up by 6% y-o-y). On the other hand, the finished steel production of the country passed 11 mn t mark, up by 8% y-o-y. With over eight mn t of steel production (semi-finished+finished), Mobarakeh Steel Company (MSC) continues to remain the largest steel producer.