Iran: Tariff cloud hangs over billets export market
Iran’s billets export prices witnessed a downward correction in recently-concluded tenders. An Iranian mill concluded an export deal of 40,000 tonnes (t) of steel b...
Iran's billets export prices witnessed a downward correction in recently-concluded tenders. An Iranian mill concluded an export deal of 40,000 tonnes (t) of steel billets (150mm) towards the end of last week, sources informed. The deal was concluded at around $695/t FOB for May'22 shipment.
Another export deal for 30,000 t of billets was concluded at around $696/t FOB for May shipment, most probably for South East Asia. Iranian mills were eyeing higher price levels of $710-730/t FOB but were unable to achieve higher prices.
SteelMint's latest assessment of Iran billet (3SP) export prices stood at $695/t FOB on 13 April, down $25/t w-o-w.
Meanwhile, Khorasan Steel floated a 25,000 t billet (150x150mm) export tender with the due date being 18 April. The shipment is likely to be scheduled for June.
Export tariffs worry mills
The Iranian Deputy Minister of Mines & Materials, in a letter to the Ministry, announced on 11 April the imposition of export tariffs on various products, including steel.
In the case of steel billets, the export duty will be to the extent of 17% of the total product price. This move has been initiated to discourage exports, it is believed.
"This may not have a significant impact on steel exports from Iran. However, mills will have to focus more on domestic sales now", highlighted another source.
Billets, rebar prices fall
Iran's domestic billets and rebar prices fell sharply post the announcement of export tariffs on various products, including steel by the Iranian Deputy Minister of Mines and Materials, sources informed SteelMint.
Billets trade on IME edge down
Domestic billets sales on the Iran Mercantile Exchange (IME) decreased significantly by 22%. However, the average price was largely stable, w-o-w.
Around 51,775 t of billets were traded on IME in the week under review at an average sales price of 152,458 Rial. Last week, about 66,120 t of billets were traded on IME at an average sales price of 152,105 Rial.
It seems that local Iranian players are awaiting clarity and further details on export tariffs which came into effect on 21 March. Thus, mills are likely to remain less active on the export front in the coming week.
