Iran: Domestic Billet Offer Rises Over Limited Supply
Iran domestic billet offers reportedly increased last week over the limited supply and increase in demand from the re-rollers. During last week, the billet offers almost reached USD 500/MT.
According to SteelMint assessment, during the beginning of week 09 (16-21 Feb’19) domestic billet offers were noted to be around IRR 41,550/KG (USD 476/MT). Offers went down on the next day to IRR 42,650 /KG (USD 488/MT). During mid of last week domestic offers of billet rose to IRR 43,600/KG (USD 499/MT). Towards the end of last week offers went down to IRR 42,300/KG (USD 484/MT).
As per Planner, “Currently the market is high but it is expected that prices would go down since Iran is reaching the end of financial year.”
IR Steel quoted, “Billet price hit its peak last week, and price increase was predicted from a week ago, due to limited supply and heavy demand from re-rollers.
Khuzestan steel co sold its product at the highest price of USD 461 /MT ex-work including 9% VAT on Tuesday, while it had sold it at USD 441/MT in the previous offer. After this transaction market slowed down. Billet supply improved and re-rollers stayed back.
This condition was expected. On the other hand, downward trend of global billet price, transportation problem for Iranian products and New Iranian Year Holidays that will actually start from next week onward, will help billet price reverse.
Some market participants may start forward purchasing rebar in hope of higher prices next Iranian Year ( from 21 March onward), but first half of spring is usually recession time in Iran market, with quiet sentiment of Holy Month of Ramadan which will be added to it next year.
source: SteelMint
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