Iran: Domestic Billet Prices Remain Calm Owing to Low Demand
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Iran, one of the largest producer of billet is currently facing sanctions from US, owing to which steel market of Iran is affected abruptly. Iranian Rial depreciated multi fold against USD during the last few months after the first US Sanctions in Aug'18. Many new projects and ongoing projects have been suspended which affected the construction industry in Iran resulting to low demand of finished long steel.
Last week billet prices in Iran were almost stable W-o-W. As per SteelMint's assessment, during the beginning of week 43 (20 Oct- 25 Oct'18) billet was traded at around IRR 36,550/KG (USD 870/MT). On Sunday, prices reduced a bit and reached IRR 36,400 (USD 867/MT). During the mid of last week domestic billet prices increased by around USD 10-12 by reaching IRR 36,940/KG (USD 880/MT). Towards the end of last week, prices decreased to IRR 36,350/KG (USD 865/MT).
According to Planner "The market is calm, the gap between prices in IME and free market is widening a bit."
IFNAA quoted "Sadness in long products market appeared which affected billet market too. Some strengthening rumors about declining base price of billet at IME in coming future to USD 762/MT ex-work excluding 9% VAT, therefore re-rollers are moving cautiously and prefer keep inventories at the possible minimum level. Ambiguities in export market, billet export offer has declined from USD470/MT FOB to USD 440/MT and some sources talk about USD 430/MT FOB."
| Commodities | 20/10/2018 | 21/10/2018 | 22/10/2018 | 23/10/2018 | 24/10/2018 | 25/10/2018 |
| Scrap | 29,960 | 30,940 | 30,980 | 30,980 | 31,000 | 30,950 |
| Billet | 36,550 | 36,400 | 36,200 | 36,940 | 36,380 | 36,350 |
| Rebar | 44,430 | 43,940 | 44,150 | 44,200 | 44,220 | 44,030 |
| Difference between Scrap-Billet | 6,590 | 5,460 | 5,220 | 5,960 | 5,380 | 5,400 |
| Difference between Billet-Rebar | 7,880 | 7,540 | 7,950 | 7,260 | 7,840 | 7,680 |
Unit - IRR/KG
Source: Planner
