Mining News Pro - Recently, Ministry of Industry, Mines and Trade of Iran has announced a policy of selling billet and slab in Iran Mercantile Exchange. As per the policy, big steelmakers are required to sell their products to authorized buyers in IME with a fixed price of FOB CIS x IRR 42,000. Also, the steelmakers can raise the price of the product in IME only by 10% on each offering.
According to Mining News Pro -Recently, Ministry of Industry, Mines and Trade of Iran has announced a policy of selling billet and slab in Iran Mercantile Exchange. As per the policy, big steelmakers are required to sell their products to authorized buyers in IME with a fixed price of FOB CIS x IRR 42,000. Also, the steelmakers can raise the price of the product in IME only by 10% on each offering.
It is to be noted that billet offers from CIS nations was USD 470/MT, FoB Black Sea last week and as per this policy the billet price in IME came around IRR 19,740,000/MT against the market offers of IRR 36,140,000/MT.
This policy is unwelcomed by many of the big steelmakers in Iran, as it has lowered the speculative demand in the market. There is clearly a big difference in the prices on IME and spot market.
As per SteelMint’s assessment, domestic billet prices has fallen in last week. On 17-Aug’18, billet price was noted to be around IRR 37,010/KG (USD 881/MT). During mid-week, prices started falling from IRR 36,900/KG to IRR 36,140/KG (USD 879/MT to USD 860/MT).
According to Planner “The market is complicated, there are some clash of ideas between authorities in pricing steel, taking into account the fluctuating trend of dollar as well as depreciation of IRR.”
IRsteel quoted “Main reason behind downward trend of billet price was lower demand from re-rollers. Uncertainties about future of long products market has reduced billet transactions level too.”
Khouzestan Steel Company and SKSCO Sold Billet at the Price of Scrap in IME
Iran’s major steel exporter Khouzestan Steel Company has sold 20,000 MT of billet on 21-Aug’18 at IRR 24,024/KG (USD 572/MT) which is less than the prices of scrap being sold in spot market. Demand of KSC billet was noted to be around 65,000 MT.
On parallel lines, South Kaveh Steel (SKSCO) has also sold 10,000 MT of billet in IME on 21-Aug’18 at IRR 24,024/KG (USD 572/MT) against the demand of 60,000 MT.
KSC and HOSCO has offered 10,000 MT and 20,000 MT slab respectively today in IME
