CIS suppliers have reduced their steel billet export prices for Iran, just as for other destinations, following their attempts to raise their prices in the last month of 2010 and in January this year. CIS suppliers are currently offering 125 x 125 mm to 150 x 150 mm billets at $640-650/mt CFR Iranian northern ports for production in March and shipment in April, down from $680-690/mt about two weeks ago and at same level as in the last week of December 2010.
Despite the decline in CIS billet export prices, ready stock billet prices in Iran have been rising in the last few weeks. Local supply and demand for ready stock billet usually is the most important factor which determines billet prices in the local Iranian market. Fluctuations in import billet prices (especially CIS billet) is usually the second most important factor. At present, local Iranian traders are offering CIS origin ready stock billet of 100 x 100 mm - 150 x 150 mm sizes at about $650-695/mt ex-stock Iranian northern ports, up from $640-675/mt about two weeks ago, but down from $655-695/mt around four weeks ago. Ukranian origin ready stock 125 x 125 mm - 150 x 150 mm billets currently stand in a price range of about $640-650/mt ex-stock Iranian southern ports, up from $625-635/mt about two weeks ago and at the same level as four weeks ago.
Although billet prices have trended up in the last few weeks in Iran, there has been no price increases for rebar and steel sections in Iran yet. However, most market participants now think that ready stock billet prices in Iran will not rise much further if global prices of billet continue to fall in the coming weeks. Furthermore, the high volume of imported billet coming into Iran (500,000-600,000 mt per month) is another factor which will hinder the continuation of the current rising trend of the domestic billet market.