Iran: KSC Issues Billet Export Tender, Mills Eye Higher Offers on Scrap Price Hike

Iran's KSC has issued a tender for export of 30,000 MT billet and 30,000 MT slab for end May shipment, SteelMint learned from its sources. Major mills in Iran are eyeing for price levels of USD 350-355/MT, FoB Iran for billet export, considering recent rebound in Turkish scrap prices.

After being remained silent for a couple of weeks, Iran was noted to book to 60,000-70,000 MT billets to GCC and China. Each lot was of approximately 30,000-40,000 MT. While the deal value was noted to be USD 350/MT, FoB Iran for GCC location and 335/MT, FoB Iran for China. The difference in the deal value is largely due to the freight. China fetches high freight value; in the range of USD 20-25/MT, while GCC location fetches between USD 10-15/MT.

SteelMint's assessment for Iran billet export offers is now at USD 335-345/MT, FoB Iran, up USD 5-10/MT against last week. The hike in billet export offers from the country was largely supported by the recent increase fetched by Turkey's imported scrap prices.

Tight supplies and lower collection rates have continued to push up price levels in Turkey and across the globe. However, ongoing COVID-19 lockdown has kept many steelmakers away from the market. SteelMint's assessment for USA origin HMS 1&2 (80:20) now stands at USD 258/MT CFR Turkey, rising by USD 8-10/MT against last week's closing, while in comparison to early last week.

Iran's steel production up by 8% Y-o-Y

According to the Iran Steel Producers Association report, the country was noted to produce 43.28 MnT of semi-finished and finished steel products during the 11 months since the beginning of the last Iranian year (Mar'19-Feb'20) to register a Y-o-Y increase of 7.96%.

-- The production of semi-finished steel stood at 24.93 MnT, up 10% Y-o-Y. Billet and bloom made up 15.33 MnT, while slab output hit 9.59 MnT to register an 18% raise and a 1% decline respectively Y-o-Y.

-- Meanwhile, the finished steel output registered a 5% Y-o-Y increase to reach 18.35 MnT.

-- With 9.25 MnT, the long steel products had a major share in finished steel production, up 6% Y-o-Y. The production numbers of rebar, beams, and L & T beam were stood at 7.48 MnT (up 5% Y-o-Y), 1.03 MnT (up 8% Y-o-Y), and 738,000 MT (up 13% Y-o-Y) respectively.

-- Flat steel production of the country reached 9.09 MnT to pose a Y-o-Y growth of 5%

-- With 7.51 MnT of production, HRC posted a Y-o-Y growth of 3%, followed by CRC with 2.39 MnT (up 2% Y-o-Y) and coated coil with 1.57 MnT (up 24% Y-o-Y).