In the Iranian steel market, both local and imported steel billet prices have increased in the last two weeks due to the depreciation of the Iranian rial against foreign currencies, although demand has remained quiet.
In the Iranian market, offers from CIS suppliers in the second half of December for January production 125 x 125 mm to 150 x 150 mm steel billet have been standing at $640-650/mt CFR Iranian northern port (Anzali) for advance payments and for shipments in February. In the first half of the current month, ex-CIS steel billet prices for the Iranian market were at $610-620/mt CFR. In the meantime, Dubai-based traders are offering similar material at about $10-15 higher for transactions via letter of credit.
On the other hand, Iranian origin billet prices in the country's domestic market are at about Rial 7.9-8.10 million/mt ($707-725/mt) ex-works, up from Rial 7.80-8.00 million/mt about one to two weeks ago. Iranian origin billet prices are currently about $10-20/mt cheaper than imported billet prices and thus Iranian mills prefer to buy billet from the local suppliers.
According to the information provided by Iranian customs, Iran's total steel billet imports in the first nine months of the current Iranian year amounted to approximately 2 million mt, compared to 3.2 million mt in the corresponding period last year. Tightened international sanctions - especially banking sanctions - have been curbing Iran's steel imports for a while now and also the country's increased local steel billet output has caused steel billet imports to decline. In the first eight months of the current Iranian year, Iranian plants' steel billet production increased by about 10 percent compared to the same period last year, according to the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).
$1 = Rial 11,170 (official rate)