Iran: Steel billet export prices inch down w-o-w; trades muted

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.

Falling global scrap prices, weak demand and bid-offer disparities weighed on the billet export market, SteelMint notes.

SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $458/t FOB on 22 November, a marginal decrease of around $4/t, w-o-w.

Steel exports, production up in March-October

Iran's billet and bloom exports in the first seven months of the current Persian year (March-October) registered a 4% rise y-o-y to 2.82 mnt. On the other hand, production stood at 11.09 mnt in the period under review, up 19% y-o-y, according to data released by the Iranian Steel Producers Association (ISPA).

Domestic billet, rebar prices down

Iran's domestic billet and rebar prices continued their downward trend amid sluggish finished steel demand in the region and fluctuations in the exchange rate, sources informed.

Outlook

Market sources opine that export prices are likely to drop further in the coming days on weak demand. Iranian steelmakers are looking to improve the market via exports but demand expectation is very limited owing to steep global inflation. Also, with winter approaching, the demand outlook may remain bearish.