Iranian billet witnessed a down fall of around USD 18-22 in domestic market. Domestic billet sizes 150 and 125 mm started last week at respectively USD 490-498/MT and USD 483-490 /MT ex-work including 9% VAT. Prices were downward as size 150 mm finished the week at USD 468/MT and size 125 mm at USD 458 /MT.
As reported earlier, the Ministry of Industry, Mine, and Trade for Iran has introduced a new formula for maintaining the billet price from huge fluctuations. But still the result are not satisfactory. The Ministry has approved that the billet price should be 89% of rebar prices from 4 mills including Esfahan Steel, Mianeh Steel, Kavir Steel, and Khorasan Steel, each of which have their own flaws and issues.
Esfahan Steel (ESCO) one of the largest producer of rebar, mostly do wholesaling and as a result it has decreased its price by around IRR 1000/kg. So, their price is not the real reflection of the actual market.
Mianeh Steel and Kavir Steel offer low tonnages, but whenever they are short of billets, they try to lower their rebar prices, in order to buy cheap billets and restock.
Khorasan Steel is mostly sell to specific companies in the nearby area and is more focused on the export to Afghanistan market because of low distance between the countries.
The problems has caused the billet offered in IME to be mis-priced and since the IF billet producers do not have enough liquidity, they are forced to cut their prices sharply and maintain their share of the market. Due to scrap maintained its levels, the margin of IF billet producers have dropped significantly in the last couple of days in Iranian market.
KSC Billet and Slab Tender
As per Market Sources of SteelMint, KSC Billet tender concluded at USD 472-475/t FoB likely to be shipped to gulf countries, booked 40,000 MT.
For Slab tender KSC sold 60,000 MT at USD 470/MT, FoB. Cargo likely to be shipped to Far east countries like Taiwan etc.
Source Steel Mint powered by Keyvan Jafari Tehrani (JTC)
