Iran: Billet Export Offers Plummet Before November Sanctions

Iran, one of the largest billet exporter in MENA region has exported 1,790,224 MT billet and bloom during the first five months of current Persian year (21-Mar till 22-Aug’18). As per the data released by Iranian Customs, export of billet during the period was reportedly up by 42% Y-o-Y against 1,258,094 MT during the same period of last Persian year.

GCC and Far East Asia was the major destination for Iranian billet.

As per the assessment billet export offers went down to USD 450-455/MT FOB. It is to be noted that billet FOB offers in Iran slide down this week against the last week offer of USD 460-465/MT FOB. Last month the offers were noted to be around USD 475-480/MT FOB.

As per market sources, ESCO has an export offer for billet is around USD 450-455/MT FOB and slab is around USD 460/MT FOB. Export offers from South Kaveh Steel was heard to be around USD 454/MT FOB last week.

One of the major reason for decrease in offer is US sanctions imposed on Iran in early Aug’18 because of which most of the potential customers are currently refraining from bookings for fear of incurring secondary sanctions. In addition, the number of shipping companies willing to operate in Iran has decreased, which has almost doubled the cost of freight.

According to Mr. Keyvan Jafari Tehrani a renowned commodity expert from Iran “On 4th November 2018, US will impose the second phase of sanctions which will hit banking, insurance and shipping sector. Owing to which importers of Iranian billet are trying to import the billets before the sanctions start to avoid further hindrance.”

UAE Remains the Largest Importer of Iranian Billet

United Arab Emirates was the largest importer of Iranian billet, the nation imported 432,626 MT during the 5 months of current Persian year by registering a growth of 215% Y-o-Y against 137,265 MT imported in last Persian year.

Egypt was the second largest importer, the nation imported 310,363 MT during the current Persian year by registering a growth of 314% Y-o-Y against 75,019 MT imported in last Persian year.

Thailand was the third largest importer, the nation imported 200,031 MT during the period by registering a downfall of 47% Y-o-Y against 378,256 MT imported in last Persian year.