Iranian Domestic Billet Prices Firm on Fresh Export Bookings

Iranian domestic billet prices remain strong on recent export orders booked by mills. According to sources, KSC has managed to sell two cargoes at IME (Iran Mercantile Exchange) at prices higher than previous levels.

Khouzestan Steel Company, one of the largest Steel producer in Iran has recently closed 2 deals for 5SP Bloom in Iran mercantile exchange for late Dec'17 and late Jan'18 delivery. KSC offered 15,000 MT Bloom for late Dec'17 for about IRR 18,350/KG excluding 9% VAT (USD 445-446/MT.

Another trade happened for 17,000 MT Bloom for late Jan'18 delivery for about IRR 18,000 excluding 9% VAT (USD 436-437/MT). As per Planner, the price offered by KSC is much lower than IF prices.

Export Bookings

According to the market sources, KSC has recently closed export deal of Slab for around USD 460/MT FoB BIK to Far East Nation. Whereas Billet was offered at around USD 455-460/MT FoB BIK to Gulf and Far East Nation. Cargo delivery is expected to arrive on late December. Billet export offers is expected to increase further as the global scrap prices will remain on the higher side owing to tight supply in winters.

According to IMIDRO, KSC has exported around 1.56 MnT of Billet, Bloom and Slab during first 7 months of current Persian year. Out of which KSC exported around 0.78 MnT of Bloom, 0.45 MnT Billet and 0.33 MnT of Slab during the period.

Falling Iranian Currency

Iranian Rial witnessed a depreciation of around 5% against USD in recent months, because of which export offers are getting supported with better realization. Steelmakers are preferring to sell most at global market.