Downtrend Continues in Iranian Domestic Billet Offers

Downtrend in Iranian domestic billet market still continue, resulting to downfall of domestic billet offers. There is less demand of finished steel as construction industry is down owing to US sanctions.

Steel manufacturers are receiving limited enquires from the buyers which has affected export offers as well. Iranian billet export offers has further come down to USD 390-395/MT from around USD 400-405/MT FoB Iran.

As per SteelMint’s assessment, domestic billet offers during the beginning of week 50 (08 Dec-13 Dec’18) was noted to be around IRR 31,690/KG (USD 755/MT). On next day, offers decreased further to IRR 30,660/KG (USD 730/MT). During the mid-week, offers went down to IRR 29,600/KG (USD 705/MT). Towards the end of week billet offers dropper further by USD 50/MT, in domestic market offers were noted to be around IRR 27,380/KG (USD 652/MT).

According to Planner Iran, “The recession is dominant in Iran market. IRR is still strengthening and the prices are adjusted downward. But still buyers are not so much interested in buying.”

IR Steel quoted, “Actually market participants are waiting for Khouzestan Steel co new offer price, therefore, DRI offer at IME ( Iran Mercantile Exchange) at base price of USD 378 /MT ex-work excluding 9% VAT had no buyer. Based on current price of billet, DRI price should be lower than USD 309 /MT. If current rumors about new price of USD 681 /MT for Khouzestan Steel co billet becomes true, DRI price would drop to around USD 286 /MT.”

Domestic Scrap and Rebar Offers Witness Downfall

Domestic scrap offers during week 50 were noted to be around IRR 23,990- 27,540/KG (USD 571-565/MT). Scrap offers fall almost by 15% W-o-W against USD 673/MT noted in last week. On parallel line, rebar domestic offers were down in week 50. As per SteelMint’s assessment domestic rebar offers were noted to be around IRR 34,830- 38,360/KG (USD 829-913/MT)