Iran: Mills put over 130,000 t billet export tenders after market resumes from Eid holidays
Iranian billets export market turned active post-Eid holidays and have seen robust offering by mills. With over 130,000 t billet export tenders lined up by key mills like...
Iranian billets export market turned active post-Eid holidays and have seen robust offering by mills. With over 130,000 t billet export tenders lined up by key mills like KSC, Arfa, Sirjan etc, trade is likely to resume after a pause.
Iranian billet export tenders:
SteelMint's latest assessment of Iran's billets (3SP) export prices stood at $670/t FOB on 12 May, unchanged, w-o-w.
However, a drop in global scrap and billets prices have put Iranian mills in a state of worry. The challenging market conditions and cheaper billets offer from Russia kept the market competitive. Taiwan-based mill booked billets (150mm) from Russia at around $650/t CFR levels towards the closing of last week. Lower priced sales have weakened market sentiments further. At the same time, declining scrap offers are likely to keep billet export prices under pressure.
Iran billets, rebar prices up on power curbs expectations
Iran's domestic billets and rebar prices increased on the back of its rising exports prices along with the hike in domestic scrap prices. Also, many Iranian mills believe that the upcoming power shortage will reduce steel production, resulting in an increase in prices, sources informed SteelMint.
Domestic billet trade rises sharply
Domestic billets sales on the Iran Mercantile Exchange (IME) increased significantly by 129%. However, the average price was down by a marginal 1% w-o-w.
Around 123,940 t of billets were traded on IME in the week under review at an average sales price of 150,035 Rial. Last week, about 54,200 t of billets were traded at an average sales price of 151,264 Rial.
Outlook
Most Iranian mills have returned to the market with export tenders and prices are likely to correct amid global slow down.