Iranian billet export market quiet awaiting clarity on export duty revision

The Iranian billet export market witnessed limited trade activities. Billet players remained muted on export duty revision, whereas, absence of export tender in the region was witnessed. Market players are opting wait-and-watch mode to get clarity on impact of export duty imposition. Iran's billet export prices remained stable this week. According to BigMint's latest assessment, Iran's billet (3SP) export prices remained stable at $510/tonnes (t) FOB on 1 March, 2024.

BigMint noted, billet exporters have shifted their interest on DRI due to subdued demand in the billet market. An Iranian mill has concluded an export deal for 30,000 t of P-DRI. The deal was concluded at around $340-345/t FOB (equivalent to $335 exw) for end March-early April, 2024 shipment.

Revision in export duties-

Iranian government revised export duty of raw materials. As export duty on iron ore has become 2% earlier it was 0.5-1%, pellet - 2% versus 1%, concentrate it is 5% and for semi-finished products it is 1% announced by the Iranian government.

Domestic billet, rebar prices rise amid stability in exchange rate

Iran's domestic billet prices continued to rise due to decent trades and stability in exchange rate. Meanwhile, limited supply of rebars and hike in billet prices have supported rebar prices, sources informed BigMint.

Billet sales on IME record drop this week

Domestic billet sales dropped by 4% w-o-w, while the average sales price on the IME rose as compared to the previous week.

During the week under review, approximately 195,588 t of billets were traded on the IME at an average sales price of 209,074 rial. In the preceding week, around 204,648 t of billets were traded, with an average price of 202,575 rial.