Iranian billet export offers rise marginally

Following global uptick, Iran billet export offers have also increased this week. Iran was reported to book approximately 30,000 MT billets to SE Asia. The deal value was noted to be USD 380-385/MT, CFR, and the shipment is scheduled for Jul'20. With this deal, the billet export offers from the country have registered a marginal rise. SteelMint's assessment for the billet export offers from Iran is at USD 355-360/MT, FoB Iran, up USD 5 against last week.

Iranian mills relieved on softening of steel export guidelines - The current acting Industry minister of Iran; Mr. Modares Khiabani, has rolled out the new export guidelines for steel exports, which mentions the relaxation of steel exports. If sources to be believed, the mills now can export up to 40% of their production, earlier this figure was 25% of the production. However, the formal release of these guidelines is still awaiting. During the conversation with SteelMint, one of the market participants mentioned "The new minister is showing big support for the steel industry by relaxing the previous guidelines. It was very challenging for the steel mills with only 25% of exports allowed".

Domestic billet market overview - On the contrary, the country's domestic billet prices have witnessed a decline with no trades reported on Wednesday; 03 Jun'20 amid national holiday. According to sources reported to SteelMint, approximately 124,000 MT billets were traded at IME, this week, at an average price of IRR 55,548/kg, down IRR 2692/MT against last week. In the second and third weeks of May'20, the Iranian government canceled all the domestic deals, as mills have violated the price guidelines. Hence, to meet the demand-supply gap, the quantity offered by the mills in the last week, was courteous enough. And consequently, the domestic market has witnessed a drop in traded quantity and price.