Iran: Steel billet export market under pressure, fails to attract buyers
Iran’s steel billet export market is witnessing downfall post-export duty imposition. Steel billet prices dropped by $10/t to stand at $473/t FOB, w-o-w. An exp...
Iran's steel billet export market is witnessing downfall post-export duty imposition. Steel billet prices dropped by $10/t to stand at $473/t FOB, w-o-w. An export tender has been floated for 30,000 t billet by an Iranian steel mill, deadline is on 1 August 2023. The shipment for the export tender is on the month of October.
Steel billet traders are resisting towards the export tender amid demand downfall and weak market sentiment. Iranian steelmakers are lacking in attracting solid buyers, which leads to bid-offer disparities, weighed on billet prices.
Overview of billet markets
- Chinese billet prices rise w-o-w: Domestic billet prices in China's Tangshan rose by RMB 50/t ($7/t) w-o-w to RMB 3,650/t ($510/t), including 13% VAT, on 28 July.
- SE Asia billet import prices fall: Billet import price indications in the Philippines fell by $2 w-o-w to stand at $518/t.
- Turkiye imported scrap prices dip: Turkiye's imported scrap prices saw a marginal change w-o-w. According to SteelMint's latest assessment, HMS 1&2 (80:20) prices from the US edged down by $5/t w-o-w to $350/t CFR Turkiye.
Domestic billet, rebar prices recover; likely to fall in near-term
Domestic billet and rebar prices witnessed a rebound this week as market players stated that prices have already bottomed out. However, prices are expected to decrease in the near-term following drop in DRI prices.
Billet sales on IME rise
Domestic billet sales on the Iran Mercantile Exchange (IME) edged up by 127% w-o-w and the average sales price dropped by 4% w-o-w.
Around 124,550 t of billets were traded on the IME in the week under review at an average price of 188,470 rial. Last week, about 54,895 t of billets were traded at an average price of 196,582 rial.
Outlook: Iran's billet export market sentiments have weakened after export duty imposition. There were some unconfirmed reports of deals getting concluded at around $460/t FoB. However, market is less active amidst Muharram holidays in Iran.
