Iranian billet export offers witnessed a correction amidst a volatile Chinese steel futures market. According to a few major steel mills in the country, export offers have come down to $620-625/t FoB levels. With bids declining in China, they may turn to explore opportunities in the Gulf or other countries.
As per sources, one of the leading steel exporters in Iran had floated a tender for 30,000 tonnes (t) of billets. The shipment is likely to be scheduled for Sept ’21. The mill was targeting price levels of around $630-635/t FoB levels. However, we could not get a confirmation whether the deal has been concluded or not.
According to data maintained with SteelMint, the Shanghai Futures Exchange (SHFE) rebar futures Oct’21 contract, on 24 June ’21, remained stable on a d-o-d basis at RMB 4,933/t ($763/t). However, on a weekly basis, futures were down by RMB 168/t.
On the other hand, domestic billet prices in Tangshan, on 23 Jun’21 were recorded at RMB 4,800/t ($741/t), ex-Tangshan including 13% VAT.
Despite falling global prices and weak demand, Iranian billet producers raised their prices on the Iran Mercantile Exchange (IME) and less than half of the offered material was sold. High supply levels, combined with high prices shows that the billet producers are reluctant to sell their products in the domestic market and count on the exports market.
Iran’s semi-finished steel production up in first 2 months: A total of 1.44 million tonnes (mn t) of steel products (both semi-finished and finished) were exported during the first two months of the Iranian year, i.e, 20 Mar’21-20 May’21. Semi-finished steel exports stood at 967,000 tonnes (t), up by 134% y-o-y and those of finished steel were at 477,000 t, up 93% y-o-y. With 341,187 t of steel, Khouzestan Steel Company (KSC) remained the top Iranian exporter, registering an increase of 136% y-o-y. This was followed by ESCO at 213,800 t. The third-largest exporter was Kavir Steel.