Iran steel market trend in week 23rd – Billet market

Billet market was slightly downward by IRR 200,000 pe rtonne during last week in Iran. Billet size 150 mm was offered in import market at IRR 17.4million per tonne on truck in Anzali including 8% VAT and custom duties.

Domestic billet size 150 mm was transacted at IRR 17.2 million per tonne ex works including 8% VAT but at limited tonnage. Size 120 mm was offered at IRR 16.3 million per tonne to IRR 16.5 million per tonne ex work including 8%VAT.

Last Saturday, Khouzestan Steel Company sold 36,800 tones of its billet at IRR 16.02 million per tonne ex work excluding VAT. The deal final cost price after 8% VAT would be more than IRR 17.3 million per tonne.

Market participants are waiting for Khouzestan Steel Company new offer price at IME. As the producer is active in export market, price reduction in domestic offers may be unlikely.

At the moment Iran billet market is not in a clear direction and steel mills prefer buying at limited tonnages. Consumption level is low and market players are waiting for final result of nuclear negotiations with 5+1.

Source – IR Steel

(www.yaang.com)