Iranian billet export market stays subdued post-export duty revision

The Iranian billet export market remain subdued this week. Players were inactive due to uncertainty post-the export duty revision. Meanwhile, active fresh export tenders were absent and trade volumes were lower.

According to BigMint's latest assessment, Iran's billet (3SP) export prices inched down by $4/tonne (t) w-o-w to $506/t on 5 March, 2024.

As per sources, an Iranian mill concluded its 30,000-t billet export tender at $507/t FOB. This tender was floated before the export duty revision, BigMint noted.

Market participants are opting for a wait-and-watch mode to get a better perspective on the impact of the export duty revision in the global market. Last week, the Iranian government revised the export duty on raw materials - on iron ore it was raised to 2% from the previous 0.5-1%. On pellets, the duty was increased to 2% from the previous 1%, while on concentrates and semi-finished, it remained unchanged at 5% and 1% respectively.

Domestic billet, rebar prices continue to head north

Iran's domestic billet prices continued to witness an upward trend due to improved demand and increase in exchange rates. Due to supply restrictions, rebar prices also increased, sources informed BigMint.

Billet sales on IME record fall this week

Domestic billet sales decline by 7% w-o-w, while the average sales price on the IME stayed largely stable as compared to the previous week.

During the week under review, approximately 181,273 t of billets were traded on the IME at an average sales price of 211,734 rial. In the preceding week, around 195,588 t of billets were traded, at an average price of 209,074 rial.