Iran's Domestic Billet Prices Increased in Line with Increase in Export Offers
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Iran, one of the largest producer of billet has witnessed a rise in billet price in domestic market. Billet market opened at IRR 20,440/KG (USD 432/MT) on 03-Feb’18 after weekend on Saturday. Billet price increased to IRR 20,730/KG (USD 439/MT) on Sunday, and price reached to IRR 20,900/KG (USD 442/MT) on Monday. During the mid-week, the billet price was noted to be around IRR 20,890/KG (USD 442/MT) and towards the end of week, billet market closed at around IRR 20,850/KG (USD 441/MT).
As per SteelMint assessment “Recently Iran has booked ample quantity of billet for export which has created shortage in supply of billet in domestic market. KSC has signed contracts for export of 80,000 MT billet for Mar-Apr’18 delivery. South Kaveh Steel, one of the largest export of billet has reported to sold 50,000 MT of billet for Mar’18 delivery.”
As per Planner, the market witnessed the upward trend mainly because of increase in seasonal demand of billet. Apart from increase in demand, the dollar appreciation also helped to increase the billet price in Iran. Scrap price also increased in recent days which pulled up the price of billet and finished long products.
IRSteel quoted “Higher scrap price and its supply shortage. Higher scrap price is not affordable for billet producers and has declined their profit margin significantly. Also, strange decline of DRI supply which has affected billet production. Minimum price of DRI is USD 224 /MT at the moment but in limited supply”
Ferrous scrap was traded in Iran at around IRR 16,400/KG (USD 347/MT) in last week and difference between scrap and billet was noted to be around IRR 4,400/KG (USD 93/MT). On parallel line rebar was traded at around IRR 23,050/KG (USD 488/MT) and difference between billet and rebar was noted to be around IRR 2,300/KG (USD 49/MT).
| Commodities | 3/2/2018 | 4/2/2018 | 5/2/2018 | 6/2/2018 | 7/2/2018 | 8/2/2018 |
| Scrap | 16,300 | 16,370 | 16,400 | 16,390 | 16,430 | 16,470 |
| Billet | 20,440 | 20,730 | 20,900 | 20,890 | 20,850 | 20,850 |
| Rebar | 22,740 | 22,920 | 23,120 | 23,220 | 23,210 | 23,220 |
| Difference between Scrap-Billet | 4,140 | 4,360 | 4,500 | 4,500 | 4,420 | 4,380 |
| Difference between Billet-Rebar | 2,300 | 2,190 | 2,220 | 2,330 | 2,360 | 2,370 |
Inputs taken from Planner
KSC Sold 20,000 MT 5SP Bloom in Iran Mercantile Exchange
Khouzestan Steel Company, one of the largest exporter of billet has sold 20,000 MT 5SP Bloom in IME on 06-Feb’18 for Mar’18 delivery for IRR 19,963/KG (USD 422/MT) exclusive of 9% VAT. The demand from buyer was noted to be around 30,000 MT but the deal was confirmed for 20,000 MT.
