Iran: Steel billet export market sees muted trading, prices inch down

Iran's billet export market remained silent this week with prices witnessing a marginal decrease w-o-w. No deals for exports were recorded by SteelMint so far.

Moreover, economic activities in Iran are getting hampered due to pending political negotiations involving the Joint Comprehensive Plan of Action (JCPOA), sources informed SteelMint.

SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $458/t FOB on 20 September, which saw a marginal decrease of around $2/t w-o-w.

Exports down, production up in March-August

Iran's billet and bloom exports in the first five months of the current Persian year (March-August) registered an 11% fall y-o-y to 1.82 mnt. On the other hand, production stood at 7.67 mnt in the period under review, up 18% y-o-y, according to data released by the Iranian Steel Producers Association (ISPA).

Domestic trade on IME falls w-o-w

Meanwhile, domestic billet sales on the IME fell 18% w-o-w. However, the average sales price witnessed a slight increase of 2%.

Around 154,860 t of billets were traded on the IME in the week under review at an average sales price of 128,219 Rial. Last week, about 189,370 t of billets were traded at an average sales price of 126,091 Rial.

Outlook

Iran steel billet export prices are expected to remain under pressure amid competitive offers from Russia. Meanwhile, futures trade-related activities also depend on the results of the current political negotiations.