Let’s take a look at the reasons behind this upward trend:
1- Higher billet price in global markets as CIS export offer is over USD500/mt FOB Black Sea.
2- Higher Iran’s billet export level with improvements in its prices. Far East billet buyers are fueling their warehouses as New Year Holidays is near. This upward demand level had a positive effect on Iran billet export market.
3-Lower supply level of market leader Khouzestan Steel Co and rumors about possible rise of its billet price to follow global markets trend.
If this rumor became true and Khouzestan Steel co billet pricing in Iran domestic market follow global markets, domestic billet price would surge upward by up to USD 72 /mt. Therefore, demand level of small private mills would rise and they may rise prices too.
Source: IFNAA News Agency