CIS suppliers have once again hiked their billet prices for the Iranian market. At present, CIS suppliers are offering 125 x 125 mm to 150 x 150 mm billet at $690-700/mt CFR Iranian northern port (Anzali) for production in July and shipment in August, up from $670-680/mt about four weeks ago and up from $620-630/mt about eight weeks ago. In fact, CIS suppliers' billet prices have now regained and even exceeded the levels of January this year when they stood at about $680-690/mt CFR Iranian northern ports. Prices had been on a general declining trend from February through April.
The recent devaluation of the Iranian rial against foreign currencies has caused a general price increase for goods in Iran, especially those which are imported in large volumes. The local Iranian steel market has also been strongly influenced by the devaluation.
Local Iranian traders who import billet from the CIS have increased their prices for ready stock billet during the last few weeks - supported by the increase in billet prices from CIS suppliers. Iranian traders are now offering ready stock CIS origin billet of 125 x 125 mm to 150 x 150 mm sizes at about Rials 7.7 million/mt (about $650-655/mt) ex-stock Iranian northern ports, up from $570-585/mt about four weeks ago and increasing from $560-570/mt about eight weeks ago. Ukrainian origin ready stock billet of 125 x 125 mm to 150 x 150 mm sizes is now in a price range of about Rials 7.6-7.7 million/mt (about $553-567/mt) ex-stock Iranian southern port, up from $545-558/mt about eight weeks ago and rising from $544-566/mt twelve weeks ago. All prices include four percent VAT.
Iran, one of the main importers of steel in the Middle East and North Africa (MENA) region, imported about 4.5 million metric tons of semi-finished steel in the last Iranian year (ended March 20), according to the Iranian customs authorities.
US$1 = Rials 11,800