Iranian Billet Prices Remain Constant Amid Stable Demand in Finished Long Steel
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Iran one of the largest billet producer has witnessed stability in domestic billet prices during last couple of weeks. Iranian Rial also appreciated against USD after a long time, IRR against 1 USD was noted to be around 44,640 on 1st of Mar'18.
During Week 9 of 2018 (24-02 till 01-03'18), Iran domestic billet price opened at IRR 22,490/KG (USD 504/MT). Prices remained constant on next day, On Monday prices were noted to be around IRR 22,550/KG (USD 505/MT). During the mid-week, prices were noted to be around IRR 22,440/KG (USD 503/MT). However towards the end of week prices slide down to IRR 22,120/KG (USD 496/MT).
As per Planner "The market is calm from the middle of last week. Some mills are selling stocks to make some liquidity. The market doesn't have capacity for further increase, so the prices have started to soften"
As per IRSteel "Main reason behind this stability was long products market reamined quiet and demand for billet was low. But producers which are active in export market would be busy in coming weeks, therefore, DRI and iron ore pellet demand in coming Iranian New Year would be supported. And this won't let billet price drop in near future."
The average difference between scrap and billet was noted to be around IRR 4,910 - 5,420/KG (USD 110-120/MT). On parallel lines difference between billet and rebar was noted to be around IRR 1,980-2560/KG (USD 44-58/MT).
| Commodities | 24/2/2018 | 25/2/2018 | 26/2/2018 | 27/2/2018 | 28/2/2018 | 1/3/2018 |
| Scrap | 17,080 | 17,080 | 17,130 | 17,190 | 17,210 | 17,210 |
| Billet | 22,490 | 22,490 | 22,550 | 22,440 | 22,120 | 22,120 |
| Rebar | 24,470 | 24,580 | 24,690 | 24,710 | 24,690 | 24,680 |
| Difference between Scrap-Billet | 5,410 | 5,410 | 5,420 | 5,250 | 4,910 | 4,910 |
| Difference between Billet-Rebar | 1,980 | 2,090 | 2,140 | 2,270 | 2,570 | 2,560 |
Source: Planner
Price in IRR/KG
KSC and Khorasan Steel traded at IME
KSC, one of the largest producer of semi-finished steel has traded at Iranian Mercantile Exchange (IME). The company has sold 20,000 MT billet and bloom on 26/02/2018 for IRR 21,229/KG for mid Apr'18 delivery.
Khorasan Steel has also sold 15,000 MT billet and bloom on 28/02/2018 for IRR 20,800/KG for mid Apr'18 delivery.
Iranian export offers hovering at around USD 520/MT
Last week, Esfahan Steel was reported to sell 20,000 MT billet for around USD 515-520/MT to GCC for mid Jun'18 delivery. Last month ESCO has concluded an export deal of 70,000 MT billet at USD 499/MT for May'18 shipment. The destination of shipment was GCC.
SKS has sold billet to MENA at around USD 520/MT. Last month KSC has concluded an export deal at around USD 515-520/MT FOB Iran. Destination for billet export tender is Gulf region.
Inputs taken from Planner and IRSteel
