Posted on 18 Jan 2022
Iran has started the week with a long products price increase. One domestic mill concluded a 5.5-11mm diameter SAE 1008 grade wire rod deal for 1,000 tonnes at $625-640/tonne ex-works over the weekend, up $10/t on the previous week. SAE 1006 grade wire rod offers are $15-20/t higher, subject to producer and diameter, Kallanish notes.
Domestic rebar prices are meanwhile pegging at $545-560/t ex-works for multiple sizes of 12-32mm dia A3 rebar. If over 50% of the inquired for/booked tonnage comprises the smaller, 8-12mm dia sizes, the price goes up to $565-575/t ex-works. This is also a $15-25/t increase from last week’s prices.
The rial has appreciated to 260,000 per dollar from last week’s 262,000, according to the central bank, while the free-market rate is 275,000 per dollar.
Electric arc furnace-route billet prices are at $555/t fob Iran, with 30,000t of commercial-grade billet heard booked; however, this could not be confirmed with the mill before deadline. This is a $15/t increase on prices at the beginning of January.
“Demand for CIS billet producers is encouraging billet prices to inch up; however, Chinese buying appetite is low and this sentiment is expected to continue until the end of next week. I don’t expect a major change in Iranian billet prices in the coming ten days,” comments a senior Iranian mill official.
Traders are offering an average price for 12-32mm A3 grade rebar in the domestic market using the indicative price on the Iranian Mercantile Exchange (IME) at IRR 136,697,247/kg ($0.524) ex-traders’ yard and excluding 9% VAT. This is for tonnages over 100t. For truck basis sales (24t) the price will be IRR 1,000 higher.
Source:Kallanish
