Iran Billet Export Market Softens amid Absence of Trades

Iranian mills have kept billet export offers unchanged this week, however like last week, this week also left the market with no deals. According to SteelMint, this week Iranian billet export assessment stands at USD 380-385/MT FoB, for Aug- Sep’19 shipment, down by USD 5 against last week over softening market sentiments.

It seems Iranian ministry is administrating well to mitigate the impact of U.S. sanctions. Clues can be witnessed with a recent agreement, which is signed to increase Iran's annual steel production capacity by 10 MnTPA. The agreement was signed at Iranian Mines & Mining Industries Development & Renovation Organization on 9 Jul’19, to establish a steel mill in Persian Gulf Special Economic Zone in the form of a consortium, Financial Tribune reported.

The consortium consists of seven companies, namely IMIDRO, National Iranian Steel Company, Civil Servants Pension Organization, South Kaveh Steel Company, Golgohar Mining and Industrial Company, Maad Koush Company and Persian Gulf Saba Steel Company.

The Chairman of IMIDRO’s Board of Directors Khodadad Gharibpour said; the project will take five years, cost USD 5 billion and create 10,000 jobs.

The plan is a step forward in line with Iran’s aim to become the world’s sixth largest steel producer as per the 20-Year Vision Plan, which targets annual production capacity expansion to 55 MnT and 20-25 MnT of exports per year by 2025.