Iranian Billet Prices Decreases Further Owing to New USD Exchange Rules

Iran, one of the largest billet manufacture in MENA region has recently witnessed currency depreciation. In its latest directives, CBI has announced that exchangers are prohibited from buying and selling hard currency until further notice and will strictly transfer foreign currencies received from banks certified by CBI to designated groups such as students and patients traveling overseas for health treatment.

By considering the exchange rate of 1 USD as IRR 56,500, On 11th Apr'18, Iranian domestic billet price was noted to be around IRR 23,760/KG (USD 421/MT). Post weekend on 15 Apr'18, Prices dropped down further to IRR 22,640/KG (USD 401/MT). Billet prices on 16-Apr'18 further went down to IRR 22,440/KG (USD 397/MT).

During the period scrap prices also went down, it was hovering at around IRR 17,540/KG (USD 310/MT) to IRR 17,630/KG (USD 312/MT). On parallel lines rebar prices declined from around IRR 27,560/KG (USD 488/MT) to IRR 26,640 (USD 472/MT).

As per Planner "The market is really under correction due to the new rules of CBI regarding the exchange. Most of the billet makers and re-rollers are reducing prices due to the negative expectations of the buyers. Traders have bought large quantities in recent weeks and they are under financial pressure.

Iranian Domestic Billet Prices

Source: Planner
Prices in IRR/KG
Exchange Rate : 1 USD -IRR 56,500