Economy, Business And Markets

Billet Prices Falling

Billet Prices Falling
Billet Prices Falling

 Steel billet prices fell by around one million rials per ton during last week in Iran’s northern port of Bandar Anzali. The 150mm billet was exchanged at 16.9 million rials per ton, while the 125mm billet was traded around 16.8 million rials per ton on truck in Anzali (including 8% VAT). There was little interest in buying billets among market participants, irsteel reported.

Iranian-made 150mm billet was traded at around 16.5 million rials per ton, while the price for 120mm billets reached around 16.3 million rials per ton including 8% VAT. Buyers are behaving cautiously on the market floor and producers also tend to lower their production levels.

Iranian steel importers buy steel billets using foreign currency at free market rate, so when prices drop to 450 dollars per ton (CFR) at Iranian ports, imports will increase. At the moment, Chinese billet is around 460 per ton (FOB) and billet from the Commonwealth of Independent States (CIS) is priced at 485 dollars per ton (CFR) at northern Iranian ports, including Anzali and Amirabad. As construction activities have declined globally, billet prices may continue to decrease around the globe.

As a major factor affecting the global prices, China’s iron ore imports have recently been on the decline path as sluggish steel demand has faced ample supply.

Moreover, the report also added that it’s not hard to see why Chinese producers are looking abroad. The price of steel reinforcement bars, known as rebar, fell sharply, triggering a trading halt on the Shanghai Futures Exchange.