Mining News -South Kaveh Steel has reportedly sold billet at USD 506/MT, some rare offers have been heard at below USD 500/MT too, but no deals has been taken place in that price. Last week the export offers for Iranian billet were hovering at USD 510?515/MT FOB, down by USD 15 since mid-March due to worsening fundamentals in the global market.
Limited buying activity of Iran billet in export was the major reason for drop in price also demand for finished long steel was limited.
KSC had recently issued an export tender for sale of 30,000 MT billet which got expired on 9th Apr’18. Results are yet to get declared, Last month KSC concluded an export tender of 30,000 MT. As per market source, export tender for billet was concluded at USD 535/MT FOB Iran. Destination for billet export tender is GCC region. Quantity of billet offered by KSC for delivery increased to 60,000 MT as against initial offering of 30,000 MT in tender notice.
Global billet export offers move down
1. Billet export offers from CIS nations have weakened by USD 5-10/MT W-o-W and is assessed at USD 510-515/MT, FoB Black Sea. Offers have come down amid fall in steel prices in Turkey amid weakening scrap prices.
2. SE Asian billet import prices have moved down slightly this week to USD 530-540/MT, CFR amid competitive offers from China.
3. Chinese billet export offers are heard around USD 515/MT, FoB.
4. After holidays, domestic spot billet(150*150mm, Q235) prices in China have increased slightly and is assessed at RMB 3,540/MT (including 17% VAT) against week opening of RMB 3,480/MT (including 17% VAT).
Iranian Government Sets Unified Exchange Rate of IRR against USD
Iran, recently caped the exchange rate of IRR to USD at 42,000 Rials. This decision was taken in order to control the depreciation of IRR against USD. IRR, which was hovering at 61,000 against 1 USD on Monday is expected to get controlled. This decision might affect the steel exports as producers were getting better realization in export against selling the steel in domestic market.