Mining News Agency -Iran, one of the largest billet manufacture in MENA region has recently enforced a single exchange rate to the USD, banning all unregulated trading after IRR hit an all-time low of Rials 62000 /1USD, now official rate is IRR 42000 / 1 USD.
Mining News -By considering the exchange rate of 1 USD as IRR 42,000, On 15th Apr’18, Iranian domestic billet price was noted to be around IRR 22,640/KG (USD 539/MT). On the next day prices were hovering at around IRR 22,440/KG (USD 534/MT). Billet prices on 16-Apr’18 further went down to IRR 22,440/KG (USD 532/MT). Towards the weekend, billet prices went up to be around IRR 22,950/KG (USD 546/MT). Yesterday billet was reportedly offered at IRR 22,730/KG (USD 541/MT).
During the period scrap prices also went down, it was hovering at around IRR 17,300/KG (USD 412/MT) to IRR 17,580/KG (USD 419/MT). On parallel lines rebar prices declined from around IRR 26,990/KG (USD 643/MT) to IRR 26,660 (USD 635/MT).
As per Planner “The market is under pressure due to the new rules of CBI regarding the exchange of USD. Re-roller tried to pull up the loss by increasing the prices but sellers pulled back and trade volume was really very low. “
As per market source, export tender for billet was concluded at USD 500-505/MT FOB Iran. Destination for billet export tender is Persian Gulf region. Last month KSC concluded export tender at USD 535/MT FOB Iran. Destination for billet export tender was 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.
1-SteelMint also learned that KSC has sold 40,000 MT slab recently at USD 540/MT, destination is not yet specified.
2-South Kaveh Steel has reportedly sold billet at USD 495-500/MT.
3-Other offers in Iran are heard at around USD 485-490/MT due to decline in CIS offers.