Iranian billet export market regains momentum on falling domestic prices

Iran's billet export market is poised for a potential increase in export prices. Despite facing limitations in the domestic market, mill players are expected to persist in their interest in export tenders. Concurrently, the persistent gas shortage issue during winter continues to impact mills' production, adding complexities to the market dynamics.

Sources informed that Khouzestan Steel Company (KSC), an Iranian mill, has concluded an export tender for 30,000 tonnes (t) of billets, as per sources informed. The deal was heard concluded at around $490/t FOB and the shipment is scheduled for the mid-Feb'24. Whereas, some export tender offers of around $480-490/t FOB are seen floated in the market, as per sources indicated. Billet players are expected to be active on export market due to disturbance in the domestic region.

As per SteelMint's latest assessment, Iran's billet (3SP) export prices hiked by $10/t w-o-w to stand at $490/t FOB on 28 December.

Domestic billet and rebar prices continue to follow downtrend

The domestic billet prices in Iran have witnessed a decline, attributed to reduced demand. Additionally, rebar prices have also experienced a downturn due to a slowdown in transactions at the Iran Mercantile Exchange (IME), as reported by sources to SteelMint. This dip in prices is indicative of the current market dynamics and trading conditions in the region.

Billet sales on IME head south

Domestic billet sales and the average sales price on the IME were slightly down as compared to the previous week.

Around 114,900 t of billets were traded on the IME in the week under review at an average sales price of 187,036 rial. Last week, about 124,060 t of billets were traded at an average price of 188,124 rial.