Iran: Steel billets export market sees muted trading; prices stable w-o-w

Iran's billets export market remained silent this week with less number of firm offers in the market. No deals for exports were recorded by SteelMint so far.

Preference to domestic sales, low buying interest from the key importing nations, limited trade, and the harsh winter in the region held back trade activities in the export market. However, the hike in scrap offers has kept prices supported.

SteelMint's latest assessment of Iran's billets (3SP) export prices stood at around $545/t FOB on 7 February, stable w-o-w. However, some sellers expect prices to soften by $5-10/t in the near short-term amidst lower bids.

Domestic billets, rebar prices stay firm

Iran's domestic billets and rebars prices continued their uptrend. Supply of billets and rebars are limited due to a lack of supply of direct-reduced iron (DRI) in the market, sources informed SteelMint.

Domestic trade on IME rises w-o-w

Domestic billets sales on the Iran Mercantile Exchange (IME) increased by 24% w-o-w. Also, the average sales price inched up by 4% w-o-w.

Around 99,670 t of billets were traded on the IME in the week under review at an average sales price of 176,250 Rial. Last week, about 80,300 t of billets were traded at an average sales price of 169,353 Rial.

Outlook

Iran's semi-finished steel export prices are expected to remain supported because of a rise in global scrap prices. Moreover, the country is facing a severe energy shortage. However, a reduction in gas supplies during the winter may result in a decline in production volumes, which is likely to affect billets export allocations.