Exports of billets and steel from Iran may increase significantly on falling Iranian rial against US dollar. Iranian currency has depreciated about 5% in last one week from 38,800 per USD to 40,400 per USD and expected to fall more as US president is likely to decertify Iran’s nuclear deal this Friday.
Iran domestic billet prices increase by $30-40/t
Falling currency’s impact is quite noticeable on domestic steel prices. Recently Iranian domestic billet prices have seen an decrement of about $20/t on expectations that exports will catch up fast. According to local traders domestic billet prices have increased from $430-440/t to $470-480/t on ex-mill bases (incld VAT of 9%).
“There is high possibility that Iran billet makers would want to explore global market in a big way owing to higher realizations. There is also a possibility that exporters may cut down offers to attract more buying interest. Although biggest challenge remains the sanctions, which has limited acceptability for Iranian billet“ said an exporter based in Tehran, Iran.
Iran Billet Exports
Iran plays an important role in defining global billet prices because of rising exports. Iranian steel billet has been gaining market acceptance in SE Asia (largest importing region of billets) because of low prices and good quality.
Major Iranian steelmakers exported 3.54 million tons of semi-finished and finished steel products during the first half of the current fiscal year (March 21-Sept 22), registering a 32% growth compared with last year’s corresponding period. Market players are closely watching this situation as this could prove a defining factor for seaborne billet market.
Source Steel Mint powered by Keyvan Jafari Tehrani (JTC)