Iranian Billet Export Offer Remains Volatile Over Limited Demand

Iranian billet export offer continues to remain volatile in current week. Offers decreased by around USD 8-10/MT W-o-W to around USD 370-380/MT FoB. Last week, billet export offers of Iran were noted to be around USD 375-385/MT FoB.

As per SteelMint's assessment Nepal is seeking to import billet from Middle East nation. As per traders, few Iranian steel mills have offered their billet, although in small quantity of less than 10,000 MT, at around USD 410-420/MT CFR Haldia Port, India.

As per one Iranian source," There are demands for Iranian billet in global market, few export deals have done but prices are not workable for Iranian steel mills. The domestic demand is catching up. Market is bullish and steel mills are expecting that the demand will get better once the global demand further goes up."

Iran Domestic Market Billet Offers Increase Last Week

As per SteelMint's assessment, during the beginning of last week (29 Dec'18- 03 Jan'19), domestic billet offers were noted to be around IRR 28,630/KG (USD 682/MT). Offers remained almost stable on succeeding day. During midweek owing to limited supply of billet in domestic market, offers increased to IRR 29,000/MT (USD 690/MT). Towards the end of week, offers further increased to IRR 29,350/KG (USD 699/MT).

Nepal Based Importers Exploring Options from Middle East

SteelMint learned from market sources that Nepal based importers are looking to import from Middle East owing to lower price as compared to Indian mills.
"Two big mills are under negotiation to buy billets from Middle East. It is expected that landed cost would be lower by USD 30-40/MT compared to landed cost of Indian prime grade material" said a trader based in India."

Landed cost of billet would be around USD 445-450/MT CFR Nepal, he further added.