Iran: Steel billet export prices head north amid global recovery

Iran's billet export market remained active this week with prices increasing in a recently-concluded deal. Global scrap price recovery has kept billet export prices supported, SteelMint understands. Notably, imported scrap prices in Turkey have risen by around $6/tonne (t) w-o-w.

An Iranian mill concluded an export deal for 30,000 t of steel billets at around $465/t FOB, sources informed SteelMint. Prices have corrected upwards by around $5/t as against the last-concluded tender at the beginning of December.

SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $465/t FOB on 13 December, up by around $10/t w-o-w.

Semi-finished steel exports drop in Mar-Nov'22

Iran's semi-finished steel exports in the first eight months of the current Persian year (March-November, 2022) stood at 4.43 million tonnes (mnt), registering an 8% fall compared to the same period last year, according to data from the Petrometals.

The imposition of export duties at the beginning of this year, the geo-political conflict between Russia-Ukraine, and sluggish demand in different countries of the world disturbed Iranian exports. Also, the zero-Covid policy in China further led to a decline in trade from Iran.

Domestic billet, rebar prices rise

Iran's domestic billet and rebar prices continued their upward trend amid supply concerns due to a lack of direct reduced iron (DRI) in the market. Moreover, hikes in scrap prices and increases in the value of the dollar against the Rial have also supported prices, sources informed SteelMint.

Outlook

Iran's semi-finished steel export prices are expected to remain supported in the near term because of the sharp rise in global scrap prices. However, a reduction in gas supply amid cold weather in the region may result in a marginal drop in production levels, affecting exports.