Iran: Steel billet export market slows down after price drop earlier this week

Iranian steel billet export prices witnessed a decline in a deal concluded towards the end of last week. Low demand from key importing nations, fall in bids and global scrap prices have weighed on billet export prices, SteelMint notes.

An Iranian steel mill concluded an export deal for 30,000 tonnes (t) of billets at around $515/t FOB for end April-early May shipment, sources informed. Prices have fallen significantly by around $15/t against the beginning of last week. Meanwhile, Turkiye's imported scrap prices edged down by around $12/t w-o-w.

SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $520/t FOB on 18 April, down $10/t w-o-w.

Semi-finished steel exports down in Mar'22-Mar'23

Exports of semi-finished steel products totalled 7.37 mnt, down by 4% y-o-y in the last Persian year (21 March, 2022-20 March, 2023), according to data from Petrometals.

Domestic billet, rebar prices rebound

Iran's domestic billet and rebar prices recovered on improved market sentiments after a sharp fall seen after the Nowruz holidays. However, the government's pressure to decrease prices still persists, sources informed.

Domestic trade on IME up w-o-w

Domestic billet sales on the Iran Mercantile Exchange (IME) saw a sharp rise of 181% w-o-w. However, average sales price inched down slightly by 1% w-o-w.

Around 223,530 t of billets were traded on the IME in the week under review at an average sales price of 178,486 Rial. Last week, about 79,430 t of billets were traded at an average sales price of 179,815 Rial.

Outlook

Iran's steel billet export prices are expected to see a downtrend amid the decline in global scrap prices and falling bids from buyers.