Iranian mills anticipate further increase in billet exports following recent deal

Iranian billet export prices are on the rise, reflecting an upward trend in the market. A recent concluded export tender and concerns about gas supply shortages in the domestic market until the end of winter are contributing to this trend. Iranian steel producers are facing challenges in maintaining operations, leading to reduced production. Mills in Iran anticipate further increases in export prices in the near future. However, there are fewer offers in the market, and an absence of active export tenders has been observed in the region.

Sources indicate that Chadormalu Mining and Industrial Company, an Iranian mill, concluded a 30,000-tonne billet export tender at $480/tonne (t) FOB this week. Other mills anticipate export prices to rise to the range of $490-495 FOB. Limited offers are currently available in the region due to gas supply shortages during the winter season.

Domestic billet falls, rebar prices remain firm

Iran's domestic billet prices dropped and rebar prices remained stable. As per sources, market closure is witnessed due to air pollution, it has slowed down the upward trend.

Billet sales on IME rise this week

Domestic billet sales inched up by 17% w-o-w and the average sales price on the IME showed a slight uptick compared to the previous week.

Around 227,250 t of billets were traded on the IME in the week under review at an average sales price of 185,662 rial. Last week, about 193,960 t of billets were traded at an average price of 182,250 rial.