Iran: Steel billet export market sees muted trading; prices stable w-o-w

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

Low buying interest in key importing nations ahead of the New Year holidays and a reduction in gas supply amid cold weather in the region weighed on the billet export market. However, the hike in scrap offers has kept prices supported.

SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $470/t FOB on 27 December, stable w-o-w.

Domestic billet, rebar prices stay firm

Iran's domestic billet and rebar prices continued to see an upward trend amid a limited supply of billets in the domestic market. However, the market may get adjusted in the near term, sources informed.

Outlook

Iran's semi-finished steel export prices are expected to remain supported because of the rise in global scrap prices and the country facing a severe energy shortage. However, a reduction in gas supplies during harsh winter in the region may result in a decline in production levels as steel mills are mandated to reduce consumption by 30%, which is likely to affect billet export allocations.