Iran Government Sets Pricing Mechanism for Domestic Billet

Iran Government Sets Pricing Mechanism for Domestic Billet

Recently, The Ministry of Industry, Mine and Trade of Iran has issued a new policy for domestic billet prices in Iran.

According to the new report, the billet producers like Khuzestan Steel Company (KSC) must offer their material at 89% of the average price of rebars from 4 major suppliers namely Khorasan Steel, Mianeh Steel, Kavir Steel, and Esfahan Steel sold in Iranian Mercantile Exchange (IME).

The above mentioned steel producers have to sell at least 50% of their rebar production sizes 8-32mm in IME.
KSC, on the other hand, needs to offer 20,000 Mt of billet every week and 20,000 Mt of slab every other week in IME in order to balance the supply-demand chain in domestic market.

Iran Billet Exports

Major Iranian steelmakers exported 3.54 million tons of semi-finished and finished steel products during H1'17. Export were up by 32% Y-o-Y, Iranian Mines and Mining Industries Development and Renovation Organization reported.

Khuzestan Steel Company was the largest exporter during the period, as it shipped 1.39 million tons of slab, bloom and billet overseas, up by 71% Y-o-Y.

Source: Inputs taken by Planner.