Global uptrend helps lift Iran’s domestic billet market

CIS suppliers have been raising their billet prices for the Iranian market in the last two to three weeks due to the rising price trends in the global markets. The latest quotations for CIS origin 100 x 100 mm - 150 x 150 mm billet have been given at $460-470/mt CFR Iranian northern ports for production in September and delivery in October. Last week CIS suppliers offered the same material at $440-460/mt CFR Iranian northern ports, while their price was in the range of $430-440/mt CFR two weeks ago.
 
Local traders who distribute CIS  billet in the Iranian domestic market are also gradually increasing their prices for ready stock billet. Their latest offers stand at about $435-450/mt ex-stock Iranian northern ports. As this price range is lower than that for new offers from CIS suppliers, most market participants are expecting further price increases for ready stock CIS billets in the coming days.
 
Local Iranian billet producers have also hiked their prices due to the rising trends in both the global and local markets. Domestic producers are currently offering 100 x 100 mm - 150 x 150 mm billet at $440-470/mt ex-works for delivery in about two to three weeks and for payment in cash. Khouzestan Steel, which is the main local supplier of semi-finished products in Iran, is offering 150 x 150 mm billet at about $450-455/mt to the local Iranian market for delivery of a maximum of one month and for payment in cash.
 
Iran imported about four million mt of semi-finished products (mainly billet ) in the last Iranian year (started March 21). There is a far higher potential demand for billet in the Iranian market but local buyers (end-users or traders) are unable to import more billet due to financial restrictions.