Iran billet export prices soften in recent deals

This week, Iran was reported to book enormous billet volumes. However, billet export offers from the country have got little soften, SteelMint learned from a market participant. According to sources reported to SteelMint, Iranian mill was reported to book around 30,000 t billets to SE Asia at $395-400/t, CFR. Apart from this, numerous deals were also reported from the country, few reports have mentioned.

SteeMint assessment for billet export offers from Iran has come down marginally and is at $370-375/t, FoB Iran, marginally down by $1-2 against last week.

KSC floats billet export tender- Meanwhile, one of the leading exporters of Iran KSC (Khouzestan Steel Company) has floated an export tender for 30,000 t billets for early Sep'20 shipments. The company is expecting the price levels of $375/t, FoB for the tender. Before this, the company had concluded an export deal through a tender at $375-380/t, FoB Iran levels.

Domestic billet prices surge at IME- This week, approximately 98,300 t billets were traded at Iranian Mercantile Exchange, at an average price of IRR 67,890/kg ($353/t), excluding 9% VAT. The sharp increase in billet offers was a result of a sudden depreciation of IRR to the $ on Wednesday; 24 Jun'20. Steelmakers raised offers to keep IRR-based prices in line with $-denominated, globally traded billet prices.