Iranian billet export prices decline as recent tender concludes

The Iranian billet export market witnessed downtrend this week. Some Iranian mills have floated export tender last week, it is not yet concluded. Billet players remained cautious due to uncertain political situation arising in the exports market.

Notably, if the military conflict persists in the Middle East (Iran-Israel) region, it could disrupt the export of semi-finished products to Asia. This situation may affect payment transactions, cause an increase in freight rates, and lead to delays in material shipments. This has resulted in limited participation in recent billet & slab export tenders.

Iranian mill, Sirjan Jahan Steel Complex (SJSCO) had concluded an export tender of 15,000 tonnes (t) of billets at $469-470/t FOB Iran. The delivery is scheduled for end-April, as per sources.

However, some billet offers were heard at around $480-490/t FOB Iran too, sources informed BigMint. While, an export tender was concluded this week at the lower levels. Khouzestan Steel Complex (KSC) had floated an export tender of 30,000 t of billets and 50,000 t of slabs. The due date for the export tender was on 24 April. However, in the latest update received on the same, the company has extended the deadline till 28th April.

In addition, Memorandum of understanding have been signed by Turkey and Iraq for development of road projects. The connection to be build from the Gulf Cooperation Council and Iraq to Europe via Turkey. It is assumed that it will be beneficial to trade the commodities.

Domestic billet, rebar prices continue to head south

Iran's domestic billet and rebar prices continued their downtrend due to increased supply and lack of demand, sources informed BigMint.

Billet sales on IME fall this week

Domestic billet sales on the Iran Mercantile Exchange (IME) declined by 20% w-o-w, while the average sales price on the exchange remained largely stable as compared to the previous week.

During the week under review, approximately 133,975 t of billets were traded on the IME at an average sales price of 213,580 rial. In the preceding week, around 168,060 t of billets were traded, at an average price of 213,691 rial.