Iranian billet export prices up in recent deal

With the global billets price surge and return of Chinese players in the market after Lunar New Year holidays, Iranian billet export prices also witnessed an uptrend. An Iranian mill has concluded an export deal for 30,000 tonnes (t) of steel billets. The deal was heard to be concluded at $590/t FOB for Apr'22 shipment to Gulf Co-operation Council (GCC) countries.

SteelMint's assessment of Iran's billets export (3SP) prices increased around $32/t w-o-w to $590/t FOB on 10 Feb'22.

"Iranian steel mills were facing power curbs earlier. However, the scenario has eased," an official from a prominent steel mill said while talking to SteelMint.

Billets and rebar prices: Iran's domestic billet prices witnessed a downtrend due to dull demand for rebar in market, although prices of the same remained supported, as per sources.

Domestic billets trade fall on IME: Domestic billets sales on the Iran Mercantile Exchange (IME) declined by 5% w-o-w. The average sales price was also down by 1% w-o-w.

Around 120,050 t of billets were traded on IME in the week ending 10 Feb'22 at an average sales price of 129,412 Rial/t. Last week, about 128,660 t of billets were traded on IME at an average price of 130,872 Rial/t.

Sources informed SteelMint that exchange prices and trade have been affected not only by weak domestic demand but also other external factors influencing the steel market.

Outlook: As power curbs-related issues seem resolved, Iran may stimulate steel makers to increase production and push up billet export allocations. Also, the sharp hike in Chinese steel prices post CNY may push up billets trade, as offers from other origins like CIS and India have risen sharply amidst cost push.