EghtesadOnline: Prices for Iranian exports of steel billet and slab increased in the week ending May 9, with new deals reported by market participants.
Market sentiment was negative because of US President Donald Trump’s announcement on Tuesday that the United States is withdrawing from the multilateral nuclear pact with Iran, with plans to reinstate trade sanctions, Metal Bulletin reported.
Recent bookings for a total of more than 50,000 tons of Iranian billet were reported at around $500-505 per ton FOB to customers from the (Persian) Gulf Cooperation Council countries, Egypt, Southeast Asia and China.
Offers from Iranian mills came in at $495-505 per ton FOB on Wednesday, according to Financial Tribune.
Metal Bulletin’s weekly price assessment for Iranian billet exports was $495-505 per ton FOB on May 9, up from $480-500 per ton FOB a week earlier.
In the slab market, Metal Bulletin’s weekly price assessment for Iranian exports was $535-540 per ton FOB on May 9, against $520-535 per ton FOB on May 2.
Recent slab offers from Iranian mills were reported by market participants at $535-540 per ton FOB.
A 50,000-ton cargo was reportedly booked by customers in East Asia at $535 per ton FOB.
Meanwhile, the flat steel import trade in Iran has been almost non-existent in recent weeks, because of currency exchange rate issues.
One of the major concerns for traders selling materials to Iran and Iranian customers has been the 30% devaluation of the country’s national currency, the rial, since the beginning of April.
On Wednesday May 9, the rial was trading at 67,300 rials to $1 on the country’s open market, while the official exchange rate was 42,000 rials to $1.
On April 1, the equivalent figures were 47,680 rials to $1 (open market) and 37,682 rials to $1 (official).
No new offers have been heard because importers have no interest in buying, sources said.
Metal Bulletin’s weekly price assessment for Iranian imports of 2 mm hot-rolled coil has been unchanged since April 18 and remained at $595-600 per ton CFR on May 9.
Its price assessment for imported cold-rolled coil in Iran was also unchanged at $630-640 per ton CFR on May 9.