Billet price experienced reductions during last week in Iran. Price of billet size 150 mm dropped from IRR 16 million per metric tonne to 16.1 million per metric tonne to IRR 15.7 million per metric tonne on truck in Anzali including 8% VAT.
In domestic market, Khouzestan Steel co offered around 130,000 metric tonne of its 150 million billet, but just sold around 90,000 metric tonne of it at IRR 14.05 million per metric tonne ex-works excluding 8% VAT.
This made downward trend steadier. Size 120 mm was offered at IRR 14.8 million per metric tonne ex-works at the end of the week with no interest in buying.
As long products demand is down, many billet mills prefer minimum production level. Mareket participants expect this downward trend continue as long products prices are declining.
Some market participants anticipate billet prices at IRR 13 million per metric tonne in coming future which would lead to production stoppage at many small mills.
Source – Irsteel
Zhejiang Yaang Pipe Industry Co., Limited