Iran Billet Export Offers Continue to Decline

Iran, one of the major billet exporter in MENA region is currently facing economic sanctions from US, owing to which export of steel has been adversely affected. Recently, on 04 Nov’18, US imposed 2nd phase of sanctions targeting the banking, insurance and shipping industry, which has made the exports more difficult.

As per market sources, Iranian billet export offers has declined further by USD 10/MT W-o-W to USD 390-395/MT FoB. Last assessment made was around USD 405/MT, FoB. As per SteelMint sources, Iran’s finished long giant ESCO has recently closed an export deal of 40,000 MT billet at around USD 400-410/MT FoB Iran.

Amid US sanctions, many countries has suspended their trade with Iran, Iranian exporters are trying to fetch new market by offer their billet at record low offers.

Iranian Domestic Billet Offers

Domestic billet offers during the beginning of week 49 (1 Dec-6 Dec’18) was noted to be around IRR 33,460/KG (USD 797/MT). Offers continued declining over the next few days and reached IRR 33,110/KG (USD 788/MT). During the mid of week 49, billet offers in domestic market was heard at around IRR 32,910/KG (USD 784/MT). Towards the end of the week, billet offers dropped dramatically by around USD 40/MT. Offers towards the end of week was noted to be around IRR 31,490/KG (USD 747/MT).

Global billet export market overview - Week 50, 2018

1. Billet export offers from CIS nations stand around USD 420-425/MT, FoB Black Sea.

2. Trade sentiments continue to remain weak in SE Asian regions, with buying interest at levels of USD 450-455/MT, CFR SE Asia for Billets of CIS origins.