Iranian domestic billet volatile on USD-IRR fluctuations
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Iranian billet offers were volatile last week (18-24 July) as steelmakers revised offer prices in line with fluctuations in the USD/Iranian rial (IRR) exchange rate.
Steelmakers increased their offers to IRR 103,300,000/mt (USD 406) at the beginning of last week as IRR depreciated sharply against the USD. Offers had closed on 16 July at IRR 99,550,000/t (USD 417).
But as IRR appreciated against the USD for the rest of the week, offers fell to IRR 94,500,000- IRR 100,210,000/t (USD 420-440) by mid-week and closed on Friday at IRR 91,551,000- IRR 95,780,000/mt).
| Date | 1 USD to IRR | Billet Offers in IRR | Billet Offers in USD |
| 11/07/2020 | 226,000 | 94,400,000 | 418 |
| 12/07/2020 | 226,500 | 97,000,000 | 428 |
| 13/07/2020 | 234,500 | 100,000,000 | 426 |
| 14/07/2020 | 236,000 | 99,550,000 | 422 |
| 15/07/2020 | 238,500 | 99,550,000 | 417 |
| 18/07/2020 | 254,000 | 103,300,000 | 407 |
| 19/07/2020 | 247,500 | 105,951,000 | 428 |
| 20/07/2020 | 227,500 | 100,210,000 | 440 |
| 21/07/2020 | 224,000 | 94,500,000 | 422 |
| 22/07/2020 | 216,000 | 91,250,000 | 422 |
| 25/07/2020 | 232,500 | 91,551,000 | 394 |
| 26/07/2020 | 229,000 | 95,780,000 | 418 |
During last week, scrap offers in Iranian domestic market were noted to be around IRR 53,350,000/mt- 57,132,000/mt (USD 229-251/MT). Domestic rebar offers during the period were IRR 110,331,000/mt - IRR 115,737,000/mt (USD 511-543/MT).
According to Planner, "The offers went simultaneously with the USD exchange rates. Whenever IRR depreciated, steelmakers increased their offers. Also, since two weeks, billet supply in domestic market is drastically affected as very limited to nil offers were flown at IME, which further boosted the billet offers. Market is expected to be bearish in coming days as government has put a price cap for domestic iron ore, concentrates and DRI offers in domestic market, which would motivate steelmakers to offer their billet at IME."
