Iran: Billet export prices rise further in recent deals to China

Iranian billet export prices continue rising. This week, the prices rose by around $10 w-o-w in recent deals. According to SteelMint's sources, a couple of leading Iranian mills sold around 60,000 t (30,000 t each) billets in China for June '21 shipments. The deals were in the price range of $590-600/t, FoB Iran.

The rising SHEFE rebar futures were pulled up by the Chinese bids and consequently the Iranian billet export prices. According to the data maintained with SteelMint, the SHFE Oct. contract rose by RMB 200/t ($31) w-o-w and today closed at RMB 5452/t ($843/t). Owing to this, the Chinese bids for Non-ASEAN billets are now ranging around $650-660/t, CFR.

Deals and Offers:

• Chadormalu booked 30,000 t billets through a tender: Chadormalu Mining and Industrial Company, one of Iran's leading steel exporters, recently concluded an export tender floated for 30,000 t billets a couple of days back. According to SteelMint sources, the mill achieved a price level of $598-600/t, FoB Iran in the tender, up by $15-20/t against the previously concluded tender in mid Apr'21. The shipment is likely to be scheduled for June '21.
  
  
• ESCO concludes a 30,000 t billet export deal for China: Esfahan Steel Company (ESCO), another of Iran's leading steel exporters, has sold 30,000 t billets in China through a tender at $590/t, FoB Iran earlier this week, up by $10 against previously concluded tender. The shipment is likely to be scheduled for June '21.
  
  
• KSC floats export tenders for slabs and billets: Khouzestan Steel Company (KSC), Iran's leading steel exporter, has floated an export tender for slabs and billets (30,000 t each). The shipment is likely to be scheduled for June '21. Last week, the company concluded the slab tender at a price of $720/t, FoB for China. KSC remained Iran's second leading semi-finished steel producer in the last Iranian year with an output of 3.78 mn t, up by 3% y-o-y.
  
  

Iranian billet domestic prices rise marginally, with domestic demand being stable: This week, the domestic billet prices at the Iranian Mercantile Exchange (IME) witnessed a marginal rise of IRR 940/kg ($4/t) to reach IRR 118,832/kg ($499/t). According to SteelMint sources, the demand in the domestic market is stable post-Ramadan.