Billet price experienced some fluctuations during last week in Iran. As market had started working after Ramadan, long products market participants were expecting higher prices due to low market inventory. Lower supply level of billet at Anzali port in northern part of Iran also helped domestic producers. Therefore, domestic billet size 120 mm increased from IRR 16.2 to IRR 16.7 million tonne to IRR 16.7 million per tonne including 8% VAT. But market was stopped by end of the week.
Khouzestan Steel Co sold 70,000 tones of its billet at IME at base price of IRR s15.5 million per tonne ( excluding VAT) by last week and announced by Wednesday that will offer its billet at IRR 15.02 per MT on August 9th which means around IRR 500,000 MT decrease in price. This policy made retail market stopped.
Iranian buyers have purchased significant tonnages of CIS billet during last Iranian month (22 Jun to 22 Jul). Around 10,000 tones of these cargoes will arrive in coming days. Price of CIS origin billet has increased by USD 10 per MT to USD 520 per MT cfr Northern Iranian ports.
If Iranian importer opens Letter of Credit with 35% prepayment for buying these cargoes, would get a good profit so there is potential interest in importing billet.
As price of scrap and DRI has not declined in Iran, domestic billet price won’t be lower than IRR 16 million per tonne including VAT in near future.
Source – Irsteel