Billet market was so confused during last week in Iran.

Despite the fact that prices didn't drop, sellers were not aware of the real trend of the market. Buyers transacted just for immediate needs, mainly due to exchange market ambiguities and LC opening problem.

On Sunday last week, billet size 150 mm was priced at USD 901 per tonne to USD 905 per tonne but market participants kept waiting policy. By stagnancies in exchange market billet price was up and till end of the week the market was ambiguous and didn't change a lot as sections market was almost stable.

Traders are worried mainly about opening LC, so supply level of importers has decreased. Global prices have not changed a lot and billet is offered at USD 650 per tonne to USD 660 per tonne CFR Northern ports which after custom duties and exchange rate of 1USD/ 14,000 Rials, it would be USD 905 per tonne delivered at Anzali port.

Any improvement in billet price is unlikely at the current situation. Besides during last months high tonnages of billet have been bought in import market which will be shipped to Iran in coming months.

(Sourced from www.irsteel.com)