Iran: Steel billet export prices rise in recent deal

Iran's steel billet export prices rose this week after recent export tenders fetched active responses and high bids.

As per sources, an Iranian mill concluded an export tender of 30,000 tonne (t) of steel billets at around $494/t FOB. Prices rose by around $14/t against the last deal concluded at the middle of last week.

Stability in Turkiye's imported scrap prices has also kept billet prices supported. According to SteelMint's latest assessment, HMS 1&2 (80:20) prices from the US stood stable w-o-w at $375/t CFR Turkiye.

Billet and rebar prices increase

Iran's domestic billet and rebar prices increased this week due to a hike in raw material prices, sources informed SteelMint.

Domestic trade volumes drop

Domestic billet sales on the Iran Mercantile Exchange (IME) fell by 27% w-o-w and the average sales price inched down by 1%.

Around 131,650 t of billets were traded on the IME in the week under review at an average price of 208,342 Rial. Last week, about 180,070 t of billets were traded at an average price of 206,251 Rial.

Outlook

With the problem of power supply reemerging in Iran, the country's steel production is likely to remain restricted in the near term affecting billet export volumes. Power curb notices have already been sent to the steel mills that will be required to reduce their electricity consumption from 15 June-15 September, 2023.