Just small mills were offering billet which due to long products market quiet sentiment were not good sellers. Therefore, price of size 150 mm reached USD 439 /mt and size 125 mm became USD 435/mt ex-work including 9% VAT on Wednesday. By end of the week some offers were available at under USD 430 /mt. Lower price of billet and long products market sadness made billet demand level worse and production level declined more.
At the moment big Iranian billet producers are active in export market and small mills are working in domestic market. Till ex-rate is upward and export demand is available, this situation won’t change. But Chinese Lunar New Year Holiday is near and some declines have been seen in global billet markets. If Iran export level drop, exporters’ billet inventory would get back to domestic market and make small mills’ billet price cheaper. Anyway, downward trend won’t be significant as profit margin of small mills is limited.
Source:Iran Steel News Bulletin