Iran: Billets export market silent as mills await buyers' return from holidays

Iranian billets export market remained silent with no confirmed deal heard so far this week. Limited bids and approaching New Year holidays kept market participants on the sidelines.

SteelMint's latest assessment of Iranian billets exports (3 SP) decreased marginally by around $2/tonne (t) w-o-w to $545/t FOB on 30 Dec'21.

"The market is relatively quiet with no firm offers heard. Iranian mills may come up with fresh tenders in the first week of Jan'22", said a local source.

Domestic billets, rebar prices fall

Billets and rebar prices fell from mid-last week due to slow demand and increasing inventory with mills. Iran's apparent finished steel consumption marked a y-o-y decline of 12% to 11.26 million tonnes (mn t) in the first eight months of the current Iranian year (Mar-Nov'21) compared with last year's corresponding period.

Domestic billets trade at IME down 20%

Domestic billet sales on the Iran Mercantile Exchange fell by 20% w-o-w. However, the average sales price inched down further w-o-w.

Around 82,840 t of billets were traded on IME in the week ending 22 Dec'21 at an average sales price of 126,224 Rial. Last week, about 103,025 t of billets were traded on IME at an average sales price of 126,826 Rial.

Outlook

Production from Iranian steel mills may remain affected on gas supply curbs. According to a local media report, Iran's major steelmakers may suffer production loss due to reduced gas/electricity supply, ultimately taking a toll on downstream industries such as automobiles, home appliances, oil and gas, and construction, said Bahram Sobhani, Head of the Iranian Steel Producers Association (ISPA).